Giant Eagle continues its strategic shift away from convenience stores and toward pharmacies

The investment comes alongside a new business strategy called “Because it Matters” that will define its future growth, with efforts such as a new brand campaign, seasonal pricing initiatives, expanded employee training and store remodels.

It also follows a significant shift in strategy away from convenience stores and toward pharmacies. In June, Giant Eagle said it agreed to transfer pharmacy prescriptions for 78 Rite Aid locations to Giant Eagle stores, as Rite Aid completed the closure of all its stores this month. And in July, Giant Eagle completed a $1.6 billion sale of its GetGo convenience store business to Circle K owner Alimentation Couche-Tard.

“The goal of doing that was really to become more focused on, ‘How do we be a growing supermarket and pharmacy retailer?'” Justin Weinstein, evp and chief merchandising and marketing officer for Pennsylvania-based grocer Giant Eagle, told Modern Retail at Groceryshop. “We’re on a path right now to be what we would call a regional gem supermarket and pharmacy operator.” He said pharmacy is a key way to drive traffic into the stores and to the food business.

Additionally, the company plans to open more standalone pharmacies and has already converted some Rite Aid stores to fit under the Giant Eagle Pharmacy banner.

“We do believe that there’s a role to play for us in being able to operate a corner drug store with a pharmacy [where], in some cases, we’ll lean into food where there’s a need in that community for fresh food,” Weinstein said. “In other communities, they need that traditional corner drug store.”

Giant Eagle operates 220 stores, mainly in Ohio and Pennsylvania, but also Indiana, West Virginia and Maryland, according to Weinstein.

“This reinvestment is really about carving out these pillars that say we know our customers want everyday value,” Weinstein said. “How do we listen to them, be there for them and put forth actionable programs that are going to deliver on that?”

The 3 pillars of the ‘Because it Matters’ strategy

One of the three pillars of the company’s new strategy is around delivering meaningful value to customers despite the effects of tariffs, fluctuating transportation costs and inventory challenges on grocery prices.

The company said it would launch a seasonal pricing initiative aimed at providing immediate relief from inflation, investing millions to reduce prices on the most frequently purchased items. The company also launched a “$1 Deals” one-week sale in September, lowering 1,000 items to $1.

“We’re clearly operating in a time where cost is important to consumers, given what’s happening with inflation, what’s happening with tariffs,” Weinstein said.

Still, Weinstein admits Giant Eagle is never going to be the “cheapest” retailer.

“Aldi and others are going to serve that need state for the customer,” he said. “What we can be is a retailer that puts forward a great-quality product and has team members that are there to help make those moments that matter.”

The second pillar focuses on improving quality and service. It includes reviewing Giant Eagle’s supply chain to ensure it is offering ripe, great-tasting produce. This part of its strategy also includes expanding employee training programming.

“We’re really looking at our most perishable departments across the store, … things like berries, tomatoes, grapes, salads,” Weinstein said. “We’re really doubling down on those quality standards to make sure we’re right every day for the customer, because it matters to the customer.”

Of course, Giant Eagle is not alone in its quest to meet consumer demand for value and fresh products. This was also discussed at Groceryshop by executives from Sprouts, Whole Foods and Lidl.

“We see consumers incredibly focused on value; very small changes in retail price and in what products we feature, in terms of value, have big impacts,” said Joel Rampoldt, CEO of Lidl U.S., in a separate presentation at the conference. “And also, consumers are more demanding about fresh than ever. We have invested a lot in that. … The consumer’s expectation just keeps going up and up and up and up.”

Giant Eagle’s third pillar focuses on its stores. That includes a multimillion-dollar investment to remodel a dozen of its supermarkets in Pennsylvania and Ohio, renovate and expand more than 60 pharmacy departments, grow its standalone pharmacy business, introduce new shopping carts, and launch grocery delivery from 33 new locations.

The goal of these renovations and expansions, Weinstein said, is to “deliver a brighter, more modern shopping experience both for the guests and, also importantly, for our team members who show up to that building every day to work.”

Riding the retail media wave

Giant Eagle also continues to invest in its retail media business, called Leap, which stands for loyalty, experiences, audiences and partnerships. With so many other retail media players, Weinstein said it’s key as a regional player to leverage its local specialization.

“While we are not the largest grocer in the country, we have a real role to play in a market like Pittsburgh or Cleveland, and brands want to leverage Giant Eagle as that platform,” Weinstein said.

“We’ve been focused on things like omnichannel programming, custom campaigns, personalized offers — those are things that actually add value to the customer, by putting something more relevant in front of them, putting something more valuable in front of them, putting a new product they might like in front of them, and then engaging our CPG brands to come along with us on that journey,” Weinstein said.