Dive Brief:
- Giant Eagle intends to spend $100 million to lower prices, improve service and revitalize stores during 2025 and 2026 as part of a campaign to focus on “what truly matters to customers,” according to a Thursday announcement.
- The grocer’s planned investments will underpin a refocused business strategy that includes improving the quality of produce and stepping up employee training.
- The announcement comes as Giant Eagle faces intense competition from Walmart, which has dislodged the regional grocery chain from its dominant position in its home market.
Dive Insight:
The changes Giant Eagle is rolling out are part of a new business strategy the chain hopes will help spur growth as it looks to regain strength during a period defined by rocky economic conditions and upward pressure on grocery prices.
The initiative, dubbed “Because It Matters,” follows key changes at Giant Eagle, including the company’s sale of its convenience store business earlier this year and its appointment of a new CEO in mid-2023. The retailer intends to communicate its plans to shoppers through a brand campaign that will span broadcast, print, digital and other channels.
Giant Eagle’s plans include the introduction of a seasonal pricing strategy that will center on cutting prices on frequently purchased products, including proteins, pantry staples and produce. The company said it intends to spend “millions” of dollars on the price reductions, which it said are “designed to create recurring value” for shoppers as they deal with rising prices.
The chain launched a one-week sale on Thursday under which it has brought down prices for 1,000 products, including pasta, name brand beverages, yogurt and baby food, to $1.
Giant Eagle added that it will place a priority on hiring and training staff members like certified butchers, bakers, cheesemongers and cake decorators in addition to growing training programs across its stores, such as its Service Ambassador program. The trainings will ensure employees “have the right knowledge and skills to provide world class customer service,” according to the press release.
The “Because It Matters” strategy also includes making a broad selection of fresh fruits and vegetables, seafood, meat, bakery products and prepared meals available to shoppers. Giant Eagle, which runs over 200 locations in Pennsylvania, Ohio, West Virginia, Maryland and Indiana, said it plans to make deliveries to its stores seven days a week.
The retailer said it plans to improve the quality of produce it sells and will focus on all points in the supply chain, adding that it “is reviewing all processes to ensure its produce meets and exceeds customer expectations.” The company said it will place special attention on four key categories: berries, grapes, tomatoes and salads.
The Pittsburgh-based supermarket retailer said it will also improve the in-store experience through changes including remodels of 12 stores in Ohio and Pennsylvania, upgrades to more than 60 in-store pharmacies and the introduction of new shopping carts. Giant Eagle also plans to add delivery service to 33 additional stores and upgrade its mobile app.
Last September, Giant Eagle said it would invest $25 million to cut the cost of over 200 types of produce by an average of 20%.
