CARLISLE, Pa. — Giant Food Stores here Thursday agreed to purchase 16 Genuardi’s stores from rival Safeway for $106 million, a move that will further grow Giant’s rapidly expanding share of the Philadelphia market and could spell the end of the 92-year-old Genuardi’s banner.
Safeway summarily said it intended to exit the Philadelphia market, closing three Genuardi stores not in the deal and looking to sell the remaining eight stores that Giant did not purchase.
SN in October had reported that Giant, a division of Amsterdam-based Ahold, was a likely buyer for the Genuardi stores.
“Giant is always looking for convenient locations to better serve our customers,” Rick Herring, president of Giant, said in a statement. “We are very excited to have the opportunity to expand our presence in greater Philadelphia and serve new customers.”
Giant has grown rapidly into the Philadelphia region in recent years, beginning with the purchase of 13 former Clemens Markets stores in 2006. The Genuardi’s stores it is purchasing represent some of that chain’s top locations north and west of the city, sources said.