Giant breaks ground on urban flagship in Philadelphia

Dive Brief:

Giant Food Stores has revealed plans for a new two-level flagship store in downtown Philadelphia, according to a company press release. The company broke ground on the construction site Wednesday.
The 65,000-square-foot store will be part of a mixed-use development overlooking Philadelphia’s Schuylkill River, the company said. Giant shoppers will have access to an exclusive on-site parking garage.
The store will boast 600 varieties of fresh produce and locally sourced products from Philadelphia-area companies. It will also have the largest plant-based section of any Giant store. Customers can order groceries online for pickup from the new store or for delivery through Giant Direct, powered by Peapod.

Dive Insight:

Giant's urban flagship and news of its second Giant Heirloom Market in the University City neighborhood of Philadelphia have come in rapid succession. According to the press release, Giant said that its new urban store is inspired by Giant Heirloom’s connection to local food purveyors.

"This new Philadelphia store — as well as our new Giant Heirloom Markets throughout the city — represent the future of Giant: fresh solutions for the way families live now," said Nicholas Bertram, president of Giant Food, in a statement.

Competition in the Philadelphia market is getting tougher for the Ahold Delhaize banner, which has a robust presence in the metro area. Giant retains the largest market share, but with rapid expansion plans from competitors like Aldi and Grocery Outlet, the grocer's efforts to stay fresh and modern have become increasingly important.

Giant has continued to open new stores and remodel old ones in the region as part of a $70 million investment it announced last year, including three new stores in the Philadelphia suburbs and the launch of the Giant Heirloom Market format.

Other food retailers are turning to urban flagship stores to draw attention and deliver a new experience for shoppers. The star of Whole Foods' new flagship store in midtown Atlanta is a rooftop bar with a view of the city skyline. In downtown Cincinnati, Kroger has been working on a highly anticipated, 50,000-square-foot store that includes a second-floor food hall. The store is slated to open next month.