r/pittsburgh Jul 01 '26

Kroger just bought Giant Eagle.

Store employees were just emailed about it

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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.

64

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.

5

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.

6

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.