Dive Brief:
- Giant Food Stores will invest $114 million in Pennsylvania over the next 18 months to expand its presence in the state, the company announced in a press release.
- With the expenditure, Giant plans to build a new Giant Direct e-commerce fulfillment center and pickup facility in Philadelphia. This will be the grocer’s second Giant Direct facility in the state and is slated to be considerably larger than the first, spanning 124,000 square feet.
- The company will also build two new Giant Food Store locations — a 52,000-square-foot location in Harrisburg and a 66,000-square-foot store in Pocono Summit, Pennsylvania — and remodel 35 stores across its operating footprint. The remodels will offer streamlined grocery pickup, modernized decor, optimized assortment and in some cases, new Beer and Wine Eateries.
Dive Insight:
Giant's investment in a large e-commerce distribution facility shows just how serious the company is about competing for Philadelphia's online shopping dollars. With a new banner in place, an upcoming flagship and stores positioned throughout the metro area, the chain has plenty of locations needing support for pickup and home delivery services in the years ahead.
Like the company's Giant Direct e-commerce hub that opened last year in Lancaster, Pennsylvania, the Philadelphia center will also include parking bays and a customer service area where shoppers can pick up their groceries or order on the spot, a company spokeswoman told Grocery Dive. Giant will partner with Peapod Digital Labs to develop the facility, which is expected to bring 200 jobs to the community once it begins to operate.
The announcement to further invest in its home state follows a banner year for Giant Food Stores. In 2019, the company opened 17 new stores and launched the Giant Heirloom Market banner as well as the Giant Direct brand. Some of those developments were funded by a $70 million investment the company announced in 2018.
Following construction of the Lancaster e-commerce hub, Giant Direct rolled out to stores, and the grocer had 125 grocery pickup locations by the end of 2019. According to the press release, Giant Direct has experienced double-digit growth since its launch.
Store remodels also remain an important part of Giant’s strategy in the next year-and-a-half. Giant President Nicholas Bertram said in a statement that investing in its store base is a priority as the company works to enhance the in-store experience. The grocer’s goal is to provide personalized shopping through innovation, technology and a refreshed design, Bertram said.
In addition, 2020 will see the opening of Giant's fourth Giant Heirloom Market in Philadelphia’s Queens Village neighborhood.
