Giant Eagle has a plan for how it will use the money it received from the sale of its GetGo convenience stores, and it appears the funds will be reinvested in stores, labor and customers.
Last week, Giant Eagle sold about 270 GetGo locations to Laval, Quebec-based Alimentation Couche-Tard for $1.57 billion.
“The sale of the GetGo business marks an important moment in Giant Eagle’s history,” said Bill Artman, president and CEO of Giant Eagle. “It is a catalyst for investment in the communities we have served for more than 90 years.”
With the dollars from the GetGo sale, Giant Eagle plans to renovate about 25 stores and open new ones over the next five years, the Cranberry, Pennsylvania-based grocer told CSP sister publication Supermarket News in an email. The retailer added that it may also purchase additional Rite Aid pharmacies. In late May, Giant Eagle acquired prescription files from 83 Rite Aid locations in Pennsylvania and Ohio. That acquisition represents around 6 million prescriptions annually. To manage the increased volume—especially after some customers experienced longer wait times—Giant Eagle has hired over 100 former Rite Aid employees.
Giant Eagle said it will also use proceeds from the sale to help fund a recently ratified union contract covering more than 5,000 employees. The agreement includes pay increases of 3% to 5% over the next four years.
In addition, the grocer plans to lower food prices at its 215 locations.
Last year, Giant Eagle announced price cuts on two occasions—once in late May and again in late September. The “Deals for Days” summer campaign reduced prices on more than 1,000 products, while the September initiative cut prices by 20% on over 200 produce items.
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