Giant Eagle grocery chain lays off 75 workers
Giant Eagle Inc. is laying off 75 full- and part-time workers as part of efforts to trim costs.
The Pittsburgh area's largest grocery chain said on Thursday that it's cutting a variety of corporate positions at all levels, and nearly all at the O'Hara headquarters. Some jobs are being eliminated in offices in the Cleveland area.
Spokesman Rob Borella said Giant Eagle “identified areas where we could restructure the business so that we could become more efficient.” The company continuously does this, he said, though not all moves result in layoffs.
Most of the layoffs are effective immediately, the company said.
Giant Eagle's latest cost-cutting effort occurs amid traditional grocers' moves nationwide to combat market share loss to several types of competitors.
Grocery stores maintained 46.7 percent of retail food sales in 2011, the same level as in 2010, according to market research firm Willard Bishop of Barrington, Ill., but they have struggled to rebound from the recession as shoppers spend less and seek lower prices.
Sales at supermarkets and other traditional food stores are forecast to fall 1.4 percent by 2016, while supercenters such as those Wal-Mart operates, plus wholesale clubs, convenience stores, pharmacies and other formats make gains, the firm said.
Giant Eagle also cut about 81 management, administrative and clerical positions at its headquarters in September 2009.
The company employs 36,000 people in Western Pennsylvania, Ohio, West Virginia and Maryland, including about 11,000 in the southwest corner of Pennsylvania.
The privately owned company, with 229 supermarkets and 187 GetGo gas and convenience stores, had $9.9 billion in sales for the year ended June 30 compared with $9.3 billion the previous year.
“Giant Eagle is a great operator” whose stores do well in selling meats, produce and dairy along with items in the center aisles, said Paul Weitzel, Willard Bishop's managing partner.
He does not see layoffs as an industry trend.
“It's like any business in this economy. Everybody is trying to make things work,” Weitzel said.
Giant Eagle's laid-off employees will get severance and outplacement services, Borella said.
In mid-January, a promotion that offered free diabetes prescription medications and antibiotics was canceled at in-store pharmacies, with Giant Eagle citing rising drug costs.
The company in recent weeks also ended its foodperks! grocery savings plan tied to gasoline purchases and replaced it with another deal: 3 cents off a gallon of fuel when customers scan their Advantage loyalty cards at GetGo pumps. The new discount does not apply if fuelperks! earned through grocery purchases are being redeemed.
Giant Eagle also is moving into its own discount concept to rival growth by Bottom Dollar Food, Aldi and other limited assortment low-price food retailers. It opened Good Cents Grocery + More in Ross in November and expects to rebrand its Valu King stores elsewhere to that name.
Kim Leonard is a staff writer for Trib Total Media. She can be reached at 412-380-5606 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Regulators expect lawsuit over oil, gas rules process
- Trib Total Media puts 9 Western Pa. newspapers up for sale
- Mylan shareholders approve $34 billion hostile takeover bid for Perrigo
- Crash-prevention technology changes face of auto industry
- After 90 years, Goodyear forces iconic blimp into retirement
- Model T cross-country road trip provides lesson in simplicity
- What’s gained at push of a button
- Bonuses on the rise, but fewer workers receive them, survey shows
- Turbulent week on Wall Street leaves investors wondering what’s next
- 2015 Chevrolet SS departs from the expected
- Clean Air Council challenges Sunoco Pipeline’s public utility status