Giant to Revive Dead Store as E-Commerce Hub

Giant Food Stores is converting a dark store in Lancaster, Pa., into a new e-commerce hub that will facilitate curbside grocery pickup and delivery.

The store, located on North Reservoir Street in Lancaster, closed a year ago. A rendering provided by the retailer shows a storefront refitted with drive-up lanes and co-branded with the Giant to Go and Peapod logos. Both Giant and Peapod are divisions of Ahold Delhaize USA.

“We look at this e-commerce hub as an investment not just in property, but in the people of Lancaster who have waited too long to hear news from us about our future plans,” said Nicholas Bertram, Giant’s president, in a statement.  “We have been listening closely to the community, and we would like to sincerely thank Lancaster Mayor Danene Sorace for her counsel during the past several months as we developed these plans for more economic opportunity and growth within the city.”

The facility is part of a $22 million investment in the Lancaster area announced Monday by the Carlisle, Pa.-based retailer. The investment also includes four store remodels, new price investments and a new fuel station in one of its stores.

Giant said the new e-commerce hub would allow the company to meet growing demand for online grocery while serving 40% more customers than it previously had. Although common in markets such as Europe, where online grocery penetration is high, U.S. retailers are increasingly adopting the tactic as a means to address growing demand. Earlier this year, Walmart announced plans to refit a number of its closed Sam’s Club stores. Giant said the Lancaster unit is the fifth facility it has built with Peapod.

Related:1-on-1 With Nicholas Bertram, President of Giant Food Stores

“We’re seeing double-digit growth in online ordering and grocery delivery,” Bertram said. “We are rededicating ourselves to the Lancaster market, and we want this cutting-edge facility to be unique – something the Northeast neighborhood will be proud of while we meet this demand.  We’re excited because the e-commerce hub will allow us to increase capacity quickly.”

Lower Prices on Private Brands

Giant said it has reduced prices on thousands of products in produce, meat, deli, grocery, dairy, frozen food and health and beauty care that customers routinely purchase. Customers will find savings of up to 35% on staple items such as Giant brand pasta, ground beef, shredded cheese, waffles, canned beans, family cereals, aluminum foil, sandwich bags, organic yogurt and more in addition to select national brand products too.

For example, Giant brand aluminum foil went from $3.69 to $2.59 every day; Giant waffles, which were $1.99, are now $1.29; and 16-ounce Giant half & half dropped from $1.39 to $1.19. National brand items receiving a price reduction include Stoneyfield Farm organic yogurt, which was $4.29 and is now $3.79 for a 32-ounce container. Klondike ice cream bars dropped from $3.99 to $2.89.

Related:Giant-Carlisle Details $70M Expansion

“We’re committed to bringing more value every day to our Lancaster customers so we zeroed in our most popular products that families purchase every week,” Bertram said. “We also encourage our customers to download the Giant app, which provides additional personalized savings and coupons.”

New Store Features

The remodeled stores in the Lancaster market include three stores in Lancaster (Lititz Pike, Columbia Avenue, Centerville Road) and one in Lititz, Pa., and include new features that make shopping and saving easier, Giant said. 

•             Giant expanded its product selection in stores by adding an abundant selection of fresh produce, meat and seafood, including a new service meat and seafood destination case with a selection of beef, chicken, pork, lamb, veal, shrimp, fish and other specialty items.

•             In the Columbia Avenue store and in the Lititz location, customers will find an expanded deli department with new hot foods and cheese offerings. including a wider variety of grab-and-go items and presliced deli meats and cheeses.

•             In the Lititz Pike location, numerous enhancements were made to the shopping experience, including a new cheese shop, a chef prepared case with ready-to-eat meal solutions, an Asian hot bar, and a produce juicing station.  

•             There is also a new look in the health and beauty care departments of all four stores with an expanded variety of items, all easier to find due to newly installed LED lighting.

This investment in Lancaster is in addition to a $70 million investment Giant announced earlier this year to grow its store network across Pennsylvania by constructing six new stores, remodeling two locations and opening four new fuel stations over the next two years. As part of this growth strategy, Giant plans to enter the East Stroudsburg and Walnutport communities for the first time.