Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by pseudo3d »

storewanderer wrote: April 12th, 2023, 11:00 pm
buckguy wrote: April 12th, 2023, 4:31 pm One impediment to entering the Pittsburgh market is related to the comment I made about Wegman's---the surrounding markets are not doing well which would limit the distrubtion opportunities. Beyond that Kroger, frankly, doesn't bring much to the table. The Giant Eagle's I've been too are as bland and foregttable as any Kroger, with lackluster bakery, etc. My guess is that the 1984 strike simply provided a pretext for them to leave--as in Cleveland, they were, at best, always a second level player.

Meijer would bring more to Pittsburgh than Kroger--the secondary markets might not be attractive to them, too,
Kroger would bring a far stronger pricing, private label, perimeter, loyalty program to Giant Eagle. It would be like night and day. I am just not sure how easy it would be to get the customers back overnight.
While Kroger or even Albertsons buying Giant Eagle would probably do better for Giant Eagle, my question is if the reputation of Giant Eagle is to the point where it should be rebranded. It definitely has been around for a long time but even that legacy is tarnished with an unfortunate logo redesign a few years ago.

The biggest question is what the financial situation of Giant Eagle actually looks like.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by ClownLoach »

I don't know much about the market or Giant Eagle, but curiosity got the best of me and I looked up Google reviews and pictures of some stores. Low scores, bad reviews, and really dismal looking stores. Lots of very sloppy execution shown in pictures, like stacked product in aisles so low you would run it over with a cart, lots of missing price tags, burned out lights, really bleak and plain wall decor if any at all, gross looking cakes in the bakery with horrible frosting color jobs. One review said it all: lower quality and standards than Walmart at Whole Foods prices. Dismal looking operation that desperately needs new leadership from top to bottom just from what I saw there. Pictures reminded me of Winn-Dixie or worse. I could easily see a few Walmart Supercenters with "decent" execution being a better place to shop overall than this chain.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by rwsandiego »

ClownLoach wrote: April 16th, 2023, 11:08 pm...gross looking cakes in the bakery with horrible frosting color jobs...
Whatever do you mean? Doesn't everyone like a turquoise blue cake with yellow and lavender icing dribbling over the side?

Turquoise is one of those colors that food just shouldn't be.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by buckguy »

pseudo3d wrote: April 15th, 2023, 4:48 pm
storewanderer wrote: April 12th, 2023, 11:00 pm
buckguy wrote: April 12th, 2023, 4:31 pm One impediment to entering the Pittsburgh market is related to the comment I made about Wegman's---the surrounding markets are not doing well which would limit the distrubtion opportunities. Beyond that Kroger, frankly, doesn't bring much to the table. The Giant Eagle's I've been too are as bland and foregttable as any Kroger, with lackluster bakery, etc. My guess is that the 1984 strike simply provided a pretext for them to leave--as in Cleveland, they were, at best, always a second level player.

Meijer would bring more to Pittsburgh than Kroger--the secondary markets might not be attractive to them, too,
Kroger would bring a far stronger pricing, private label, perimeter, loyalty program to Giant Eagle. It would be like night and day. I am just not sure how easy it would be to get the customers back overnight.
While Kroger or even Albertsons buying Giant Eagle would probably do better for Giant Eagle, my question is if the reputation of Giant Eagle is to the point where it should be rebranded. It definitely has been around for a long time but even that legacy is tarnished with an unfortunate logo redesign a few years ago.

The biggest question is what the financial situation of Giant Eagle actually looks like.
Apropos of recent another thread, one mediocre chain taking over another isn't likely to generate a golden age, esp. if there is debt to payoff from the acquisition. A trip to GE is about as depressing as one to Safeway or Kroger already.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by veteran+ »

rwsandiego wrote: April 16th, 2023, 11:56 pm
ClownLoach wrote: April 16th, 2023, 11:08 pm...gross looking cakes in the bakery with horrible frosting color jobs...
Whatever do you mean? Doesn't everyone like a turquoise blue cake with yellow and lavender icing dribbling over the side?

Turquoise is one of those colors that food just shouldn't be.
:lol: :lol: :lol: :lol: :lol: :lol: :lol:
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by ClownLoach »

veteran+ wrote: April 17th, 2023, 8:34 am
rwsandiego wrote: April 16th, 2023, 11:56 pm
ClownLoach wrote: April 16th, 2023, 11:08 pm...gross looking cakes in the bakery with horrible frosting color jobs...
Whatever do you mean? Doesn't everyone like a turquoise blue cake with yellow and lavender icing dribbling over the side?

Turquoise is one of those colors that food just shouldn't be.
:lol: :lol: :lol: :lol: :lol: :lol: :lol:
These were colors so awful that if you had the cake decorated for a three year old's birthday party they'd probably run away to hide from the ugly cake. If it was just one store I'd chalk it up to a bad bakery department, but these pictures were consistently awful in multiple locations. Not one cake that didn't look utterly disgusting, with sickly artificial chemical white icing. Really gross. I'm going to guess the entire cake, frosting and all, comes right out of a freezer.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by Bagels »

Romr123 wrote: April 12th, 2023, 7:52 am I'd thought I'd read that Pittsburgh was on Meijer's list after they built out Cleveland; but it seems like they're building out the Illinois side of St. Louis. They had some experience there coming from Fresh Thyme, so perhaps it tilted them toward St. Louis (Fresh Thyme has a few stores in Pittsburgh, though...)
In the 2000s, Meijer double-downed on the "I-75" expansion route. I once saw a presentation in which they explained that they targeted Las Vegas / Phoenix / SoCal-Inland Empire, but Super K-Mart and Walmart were aggressively building the region out so they stuck with the I-75 route. That turned into a bust, as stores in places like Cincinnati, Louisville, etc. performed poorly and Walmart & (Super) Target aggressively built out Central Florida (Meijer acquired several sites in Central Florida, but sold them).

In the mid-2010s, Meijer moved its focus to Western IL / Wisconsin & Minnesota. They acquired some sites in Minnesota and I believe they still own them, but they said pre-COVID that the Minnesota market was over grocered. My best guess is that they smelled blood with Roundy's faltering with its Mariano's project but Meijer failed to foresee Kroger acquiring and revitalizing the chain.

I don't believe Pittsburgh has ever officially been on the map, but with the expansion into Cleveland seemingly more successful, it'd be natural.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by storewanderer »

buckguy wrote: April 17th, 2023, 4:48 am

Apropos of recent another thread, one mediocre chain taking over another isn't likely to generate a golden age, esp. if there is debt to payoff from the acquisition. A trip to GE is about as depressing as one to Safeway or Kroger already.
Safeway or Kroger are light years ahead of Giant Eagle in every way. Giant Eagle namesake banner is more at the level of Shoppers or Food Lion or Winn Dixie (but with higher pricing).

Giant Eagle does have two things I like: I like the Market District Format, and I also like the GetGo convenience stores. I find both formats to be above average for what they are.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by veteran+ »

Bagels wrote: April 17th, 2023, 7:32 pm
Romr123 wrote: April 12th, 2023, 7:52 am I'd thought I'd read that Pittsburgh was on Meijer's list after they built out Cleveland; but it seems like they're building out the Illinois side of St. Louis. They had some experience there coming from Fresh Thyme, so perhaps it tilted them toward St. Louis (Fresh Thyme has a few stores in Pittsburgh, though...)
In the 2000s, Meijer double-downed on the "I-75" expansion route. I once saw a presentation in which they explained that they targeted Las Vegas / Phoenix / SoCal-Inland Empire, but Super K-Mart and Walmart were aggressively building the region out so they stuck with the I-75 route. That turned into a bust, as stores in places like Cincinnati, Louisville, etc. performed poorly and Walmart & (Super) Target aggressively built out Central Florida (Meijer acquired several sites in Central Florida, but sold them).

In the mid-2010s, Meijer moved its focus to Western IL / Wisconsin & Minnesota. They acquired some sites in Minnesota and I believe they still own them, but they said pre-COVID that the Minnesota market was over grocered. My best guess is that they smelled blood with Roundy's faltering with its Mariano's project but Meijer failed to foresee Kroger acquiring and revitalizing the chain.

I don't believe Pittsburgh has ever officially been on the map, but with the expansion into Cleveland seemingly more successful, it'd be natural.
I wonder if there is a unique issue with the Pittsburgh market. Back in the day, Food Fair/Pantry Pride did not seem to want to expand to the west in PA. They were quite powerful back then and feared by Kroger, A&P and Safeway.
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Re: Giant Eagle loses #1 Share in Pittsburgh- Wal Mart now #1

Post by buckguy »

veteran+ wrote: April 18th, 2023, 9:35 am
Bagels wrote: April 17th, 2023, 7:32 pm
Romr123 wrote: April 12th, 2023, 7:52 am I'd thought I'd read that Pittsburgh was on Meijer's list after they built out Cleveland; but it seems like they're building out the Illinois side of St. Louis. They had some experience there coming from Fresh Thyme, so perhaps it tilted them toward St. Louis (Fresh Thyme has a few stores in Pittsburgh, though...)
In the 2000s, Meijer double-downed on the "I-75" expansion route. I once saw a presentation in which they explained that they targeted Las Vegas / Phoenix / SoCal-Inland Empire, but Super K-Mart and Walmart were aggressively building the region out so they stuck with the I-75 route. That turned into a bust, as stores in places like Cincinnati, Louisville, etc. performed poorly and Walmart & (Super) Target aggressively built out Central Florida (Meijer acquired several sites in Central Florida, but sold them).

In the mid-2010s, Meijer moved its focus to Western IL / Wisconsin & Minnesota. They acquired some sites in Minnesota and I believe they still own them, but they said pre-COVID that the Minnesota market was over grocered. My best guess is that they smelled blood with Roundy's faltering with its Mariano's project but Meijer failed to foresee Kroger acquiring and revitalizing the chain.

I don't believe Pittsburgh has ever officially been on the map, but with the expansion into Cleveland seemingly more successful, it'd be natural.
I wonder if there is a unique issue with the Pittsburgh market. Back in the day, Food Fair/Pantry Pride did not seem to want to expand to the west in PA. They were quite powerful back then and feared by Kroger, A&P and Safeway.
Interesting. Acme never had more than 5 or 6 stores in Greater Pittsburgh and they unevenly covered the smaller markets, even when their CEO came from the family whose chain Acme had purchased and ran as their Johnstown Division. Very odd. The one chain that entered Pittsburgh during the super market era was Loblaw which built stores and then bought the local Star chain. That operation was merged with their Youngstown operation and transferred to National Tea, which never made money in the Pittsburgh area and never invested much. Thorofare dominated the market for many years but did not invest in its stores when it should have in the 60s and Giant Eagle over took them. There were relatively strong co-ops at one time, with Foodland being the dominant one. Fun fact---Kroger bought the predecessor to Giant Eagle in the corner grocery era; the founding family turned around and started building super markets.

I wonder if one issue for Food Fair was the declining population. There are towns in the Pittsburgh orbit that began losing population in the 20s. Pittsburgh itself lost population in the 20s. Between the World Wars and in the decade or so afterward, Cleveland rather than Pittsburgh was the big magnet for people from the small towns and also drew people from Pittsburgh.

The topography in SW Pennsylvania is rugged in places and I wouldn't have wanted to take a semi from Pittsburgh to Uniontown in the winter on the old two lane roads---that also may have been a factor. The Alleghany plateau as its called is a significant barrier to eastward and southward expansion from Pittsburgh. There used to be a surprising amount of competition in Youngstown (nearest market of any size to Pittsburgh) and, for decades, a small number of families controlled much of the Cleveland market through chains and co-ops, running very strong operations, with large stores and first rate perishables. Kroger had many problems in Cleveland, often closing stores after a short period of time. A&P did ok for awhile but was handicapped by having relatively small stores. Food Fair may have seen limited opportunity for Westward development from Pittsburgh which would have been the most feasible direction to grow back in the 50-70s.

I always wondered why Food Fair (and Acme) never got bigger in DC. Acme had been there since the 20s, but always had single digit market share and uneven locations. Food Fair had to use the FoodLane name until Grand Union bought the local Food Fair chain but that didn't stop the Philly chain from building large shopping centers (the first multi-anchor center, Seven Corners) which gave them nice showcases. Did they shrink from aggressive competitors like Safeway and Giant? Somehow they and Acme seemed to have bigger operations in Baltimore, while competing against those two. A&P never had a huge number of stores in the DC area and Grand Union had an uneven operations, so I would think that someone could have made a strong enough effort to be a decent #3 in the market and at least over take Grand Union.
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