Meijer, the Michigan-based grocery chain known for its sprawling supercenters, is coming to Western Pennsylvania.
Fresh off its expansion in Northeast Ohio, Meijer is pushing across the state line and acquiring properties in Western Pennsylvania, spokeswoman Erin Cataldo confirmed Tuesday to TribLive. The stores do not have opening dates.
“Our expansion into this market reflects our commitment to serving more customers with fresh, affordable groceries, one-stop shopping and outstanding service,” Cataldo said. “We look forward to introducing ourselves to these communities and are committed to being an active and engaged neighbor.”
Meijer ranked toward the middle of the pack in this year’s American Customer Satisfaction Index, above Giant Eagle and Walmart, but below Aldi, Costco, Target, Trader Joe’s and Whole Foods.
Cataldo did not answer questions about how many properties Meijer is buying, where they’re located or what style of store the company is bringing to the region.
Burt P. Flickinger III, managing director of New York City-based Strategic Resource Group and a grocery industry expert, said superstore chains often target empty department stores for conversion.
“There’s too much abandoned big-box real estate chasing too few chains, so it’s an ideal opportunity for Meijer to expand,” Flickinger said.
If Meijer wants to build new locations, it might target former car dealerships and other large, flat lots, he added.
Meijer has more than 500 stores across Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin. About half are supercenters ranging in size from 150,000 to 250,000 square feet, according to trade publication Grocery Dive.
The average supermarket is just over 42,000 square feet, according to the Food Industry Association.
One of Giant Eagle’s largest Market District stores, in Robinson, is about 150,000 square feet.
Much like Walmart, Meijer supercenters feature pharmacies, health and beauty products, apparel sections, garden centers, pet supplies and more.
The other half of the company’s store count covers traditional supermarkets, small-format neighborhood markets and Meijer Express convenience stores.
The privately owned, family-run company employs more than 70,000 people. Its revenue topped $21 billion last year.
In May, it opened three 159,000-square-foot supercenters in Northeast Ohio, part of a roughly $500 million investment campaign in that part of the state.
One of those locations, near Youngstown, Ohio, is about 10 miles from Pennsylvania, suggesting a leap into the state was imminent.
Meijer’s plan to buy properties in Western Pennsylvania will only fuel an increasingly competitive regional grocery market.
Giant Eagle and Walmart are the top grocers in the Pittsburgh area, each taking about a quarter of revenues. Looking to preserve its share of the market, Giant Eagle launched a $100 million spending spree last week to lower prices and upgrade stores.
Meijer’s arrival will make it all the more important Giant Eagle refines its appeal to shoppers, according to Phil Lempert, an analyst and editor at SupermarketGuru.com.
“Giant Eagle is going to have some serious competition with everything that’s happening in the market and will really have to focus on what direction they have to take,” Lempert said. “Meijer and Walmart will own the price war, and I hope Giant Eagle doesn’t play that game.”
Wegmans, a New York-based supermarket chain with a small footprint in and around Erie, Philadelphia and Central Pennsylvania, is also entering the market soon with a store in Cranberry.
Walmart could also feel the squeeze once Meijer gets to town, since the two offer similar selections.
Meijer usually beats Walmart’s supercenters head-to-head, according to Flickinger.
One way established market players can box out new entrants is by snapping up prime properties and building new locations. Walmart does not appear to be doing that.
“I’m surprised Walmart rolled over so easily,” Flickinger said.
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