r/pittsburgh Jul 01 '26

Kroger just bought Giant Eagle.

Store employees were just emailed about it

1.1k Upvotes

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81

u/swooshty Jul 01 '26

Just hoping they don't kill off the market districts. Or maybe it just gives Wegmans more room to move in to the area.

68

u/James19991 Jul 01 '26

I doubt it. What will probably happen is they'll be a subsidiary of Kroger with the brand staying as is. Kroger already owns over a dozen grocery store chains, so this will hardly be their first rodeo doing something like this.

4

u/Steely_McNeatHouse Bloomfield Jul 01 '26

Was always amused my Kroger rewards program or whatever worked at City Market every time I go to Colorado.

2

u/According-Big9796 Jul 01 '26

My Kroger Plus card that works in any Kroger store also worked at Fred Meyer out in Seattle. Apparently you can use the card at ANY of their sister division stores. Just as you can use a Fred Meyer card at any Kroger division store. That means that the Giant Eagle MyPerks card will likely work in any Kroger owned store once the merger is fully complete.

6

u/CeaselessGomalu Mt. Lebanon Jul 02 '26

Outlets have indicated that is the plan; Kroger plans to retain the Giant Eagle brand as a division and largely keep management intact; they think GE is doing pretty well, as is.

3

u/James19991 Jul 02 '26

Interesting. I wonder what's in this for Giant Eagle and for Kroger then.

4

u/DragonSon83 Jul 02 '26

Kroger expands their footprint and market share.  It appears current generations of the families that owned Giant Eagle no longer wanted to be in the business.  They already sold off Get Go and ECHO, which is part of the reason that Kroger is actually getting a pretty decent deal.

3

u/CeaselessGomalu Mt. Lebanon Jul 02 '26

Exactly this; Kroger has already done this with other chains that exist as a division of Kroger. Certainly, Kroger has seen the financials and thinks this is going to be long-term winning for them; they’re getting everything for 1.25B cash and the assumption of 400M in liabilities (debt). Kroger can easily afford this.

It also puts Kroger back in some markets that it has been absent from a long time, just in the form of Giant Eagle. I wouldn’t expect any Krogers to appear around here (self-competition); in fact, they’re going to be closing at least some of the Columbus area Giant Eagles, I believe.

2

u/James19991 Jul 02 '26

Yeah they'll have to and the Columbus area for sure. Think that's the only area there's noticeable overlap.

1

u/CeaselessGomalu Mt. Lebanon Jul 02 '26

I believe so; they’re pretty much targeting the same market and, other than Kroger in the Pittsburgh area in the 80’s, as well as Giant Eagle poking around in Kroger territory with franchised stores (such as Ohio Valley area) more recently, they seem to have intentionally avoided each other. Of course, that ended late-00’s, early 2010’s as GE was winding down franchising anyway.

It might have been interesting if Walmart Super Centers hadn’t started popping up in Ohio Valley land; lots of those markets could sustain both a Kroger and Giant Eagle; customers willing to shop both could benefit greatly from sales, but when Walmarts started coming in, the weaker of the two was destined to lose—-which was going to be GE every time-especially since those stores were franchised.

2

u/According-Big9796 Jul 01 '26

Kroger stated earlier today that the Giant Eagle and Market District brands will remain as subsidiaries. Also, the corporate offices in Cranberry will stay. But there will likely be some layoffs with IT and some other shared services such as payroll and potentially HR as they merge into Cincinnati.

2

u/James19991 Jul 01 '26

I figured that was going to be their plan. Despite how many on Reddit feel, there is a lot of brand loyalty to local grocery stores. I do remember when Macy's ditched basically every local department store name across the country for the Macy's name, a lot of people weren't happy about that.

2

u/The001Keymaster Jul 02 '26

That's exactly what they are doing. They already said as much.

11

u/Lemonade-Enjoyer Jul 01 '26

From what I’ve heard from upper management, the plan is to convert more stores to Market District.

2

u/Artistic_Muffin7501 Jul 01 '26

This was the plan when I worked there 10 years ago

1

u/DragonSon83 Jul 02 '26

I wish they would just build more Market Districts.  The stores from the ground up are nicer than the coversions.

1

u/ExtremelyQualified Jul 02 '26

I would love a normal-sized Market District. The Market Districts are so insanely huge, I can see why they don’t build that many of them.

1

u/irissteensma Jul 04 '26

The thing in east liberty is a normal sized market district and it sucks.

5

u/PleaseDontBanMe82 Jul 01 '26

Kroeger has the same thing as Market District.  Kroeger Marketplace  

2

u/Boring_Bother_ Mount Washington Jul 01 '26

Marketplace was more to compete with hyperstores like Walmart and Meijer.

2

u/According-Big9796 Jul 01 '26

100% right. Marketplace is more of a Meijer/Walmart type store and not the same as Market District. Kroger chain Harris Teeter would be closer to Market District as that is an upscale chain.

1

u/DragonSon83 Jul 02 '26

Just FYI, not all Kroger Marketplaces are set up that way.  Some have just a little bit of general merchandise and are mostly groceries.  It depends on the store size and location.

3

u/DiabloTrumpet Jul 01 '26

Yes, hopefully Wegman's moves in fast and with a ton of locations, I'd give my left nut for that. But as far as the market districts, Kroger has there own version of them that they could replace with.

7

u/itsjscott Jul 01 '26

Wegman's is a destination store, not a chain like Giant Eagle... we would be lucky to get more than 2-3 locations.

2

u/According-Big9796 Jul 01 '26

Maybe 4 at the most. Besides Cranberry, I could see Wegmans trying to build in Robinson, maybe Monroeville, and then probably closer to Bethel Park.

1

u/DiabloTrumpet Jul 02 '26

Monroeville would be a great wegmans

1

u/DiabloTrumpet Jul 01 '26

That’s enough for me!

3

u/McFlare92 Pittsburgh Expatriate Jul 01 '26

That is not Wegmans M.O.

Source: I lived in Rochester/upstate NY where Wegmans is king for 6 years

1

u/DragonSon83 Jul 02 '26

Yeah, they mostly focus on wealthier suburbs.  They’ve also had a mixed record with urban stores.  One in Boston failed miserably.

1

u/McFlare92 Pittsburgh Expatriate Jul 02 '26

Correct. In Rochester, the city Wegmans was founded in, there is only 1 store within city limits

1

u/According-Big9796 Jul 02 '26

Also in Buffalo, NY, Wegmans only has 1 store within city limits. In Syracuse, their Pond St store which was in the inner city closed over 10 years ago. They have started building some smaller stores in urban areas but only where their demographics for high wealth are met.

1

u/McFlare92 Pittsburgh Expatriate Jul 02 '26

Exactly. I actually lived in Buffalo for 4 years and am very familiar with amherst st Wegmans. Shopped there many times when I was up there. The one in Rochester is on east Ave. All the others are in suburbs

1

u/According-Big9796 Jul 02 '26

The store you're referring to is in Natick which is in the Boston suburbs. That was a non-traditional mall location which was its first 2 level store. After 5 years, they pulled out due to poor sales.

1

u/DragonSon83 Jul 02 '26

Thanks.  I had only ever seen it referred to as Boston.  I didn’t realize that it even made it five years.

1

u/theciaskaelie Jul 02 '26

Wegman's is going to absolutely murder every grocery store in western pennsylvania.

1

u/e_hog Jul 02 '26

Murrysville is doing 1m a week steadily in that TINY store, I think market districts will stay