Giant Awakening

Sharp pricing, high quality, top-notch stores and dedicated associates enable the GIANT Food Stores division of Ahold USA to be the market leader in its key operating areas.   

Retailers in the Mid-Atlantic States are going up against a supermarket operator renowned for meticulously clean stores that on average are replaced or extensively remodeled every seven years. These stores are staffed by dedicated associates where most full-timers have more than a decade of service.

Inside, shoppers find a bustling neighborhood market feel, filled with amenities including Starbucks cafes, Chinese kitchens, sushi bars, store-baked artisan breads and dedicated natural and organic aisles. It is all arranged in an easy-to-shop layout with an emphasis on perishables, in-store nutritionists and the latest technological wizardry, like hand-held shopper scanners and kiosks that help shoppers find items in the store and electronically place their deli orders, avoiding having to wait in line. Management has been steadily improving the quality of its perishables, sourcing from local farmers on a store-by-store basis.

This operator is GIANT Food Stores, the Carlisle, Pa.-based division of Ahold USA that runs 199 supermarkets under the GIANT and Martin’s banners in Central Pennsylvania, greater Philadelphia, Maryland, Virginia and West Virginia.   

Throw in GIANT’s new “Operation Thunder” program of locked-in low prices on key perishables, like bananas and luncheon meats, along with its vigor to attack new competitors tooth and nail with low prices, plus popular promotions like Gas Points that reward shoppers with deep discounts on gallons of gasoline at GIANT gas stations and it is easy to see why GIANT is such an excellent and formidable competitor.

It is for these reasons and many more that Grocery Headquarters is proud to honor GIANT Food Stores as our 2015 Chain Retailer of the Year.

“We are very aggressive,” says Tom Lenkevich, president of GIANT Food Stores. “We’re very aggressive when new competitors come into the market. We’re very aggressive at getting that impact with our communities. We have very strong [market] share not only because we run a great store, have great value and great service, but we’re part of the community,” he says, adding, “If a ShopRite comes into our market they are in for a fight—and they know they are in for a fight. It is not a fight for a week or two, but a fight to the death. We’re going to get in and rumble with them.”      

According to Lenkevich, after its dedicated associates, what sets GIANT apart is its connection to the community. “We like that community connection and engagement and we think that is what makes us special and above everyone else,” he says. “Heck, we are number-one in every one of our major markets—Philly, Central Pennsylvania, Richmond. There may be some secondary markets where we have two or three stores where we are maybe number two, but we’re dominant in our markets and one of the key reasons is the engagement we have.”

GIANT currently operates in Philadelphia’s Pennsylvania suburbs, with only one store currently in the city limits. However, company officials see the City of Brotherly Love as a growth opportunity. “We are definitely looking for growth in that marketplace; the city is definitely on our radar screen,” Lenkevich says. “The challenge is finding the right location and demographics. You have to take into account bus and rail lines, adequate parking, walk-in trade, that blend that you really need in the city to be successful. It is really an opportunity we are looking at and continue to pursue—quite heavily,” he says. 

GIANT is consistently among the strongest of Ahold USA’s banners, which include Stop & Shop in New England and metro New York/New Jersey and Giant Landover in the Baltimore/Washington area.

“I really think one of our strengths is that we are part of a larger company, but we’re still a local company,” Lenkevich says. He has been with GIANT for about a year, having joined the company from Save-A-Lot.

Another aspect of the company’s success is that Ahold largely lets its American banners run autonomously, Lenkevich says.

“We procure everything here in the States,” he says. “We are really a U.S. company that is owned by an international company. We are treated as an American company, and truly GIANT Carlisle has been homegrown by the parent, and led by really dynamic true leaders that preceded me and handed off a nice company to me.”

GIANT’s private label program is centralized with its sister divisions, but produce, meat, seafood and other perishables are bought on a local level. In produce in particular, GIANT has stepped up its game, and is using it as a key competitive weapon.

“We really want to be the best in produce, as an organization,” Lenkevich says. “We’re driving that really hard. We’re investing in it with training, fixtures, lighting, merchandising and procurement. We’re investing in produce because we believe that even though we are the best supermarket in the markets we compete in, we also want to be the most premiere produce supermarket.”   

That centers on stocking local produce whenever possible.

“We have a huge fresh produce ‘Buy Local’ program in all of our stores,” Lenkevich says. “And ‘Buy Local’ means buy local in Central Pa., buy local in Greater Philly and buy local in Richmond. It is done around the local stores. We have an intense program where we will cross-dock with a corn grower out here in Carlisle who brings it to our PDC [Perishables Distribution Center] and we ship to these local stores. We do the same thing in Richmond with Virginia’s local corn growers. We are really trying to support the local community.”

Currently at 400,000 square feet, the PDC has been expanded several times and has room for more growth. Grocery and frozen foods are supplied through C&S Wholesale Grocers out of their York, Pa. facility.

To increase its competitiveness in the perishables categories GIANT is in the midst of rolling out Operation Thunder, a program borrowed from Stop & Shop Metro New York that drastically lowers prices on key perishables. Bananas, for example, now have an everyday price of 49-cents per pound/79-cents for organic; filet mignon is now only $13.99 per pound, fresh parmesan cheese is $12.99 a pound down from $18.99; and pre-sliced luncheon meats and cheeses are $4.99 a pound, down from up to $8.99.

Operation Thunder items are marked with “Low Everyday Price!” shelf tags.

They can be seen literally everywhere in GIANT’s new Hampden Township/Enola store, just outside of Harrisburg. The 76,000-square-foot store (60,000 square feet selling), opened in October, replacing a 15-year old store three miles down the road—ancient by GIANT standards.

“We have very young stores on average that are only about six years old. We invest heavily into our facilities to keep them current, updated, new and modern, and we think that is a competitive advantage,” Lenkevich says.

The store contains a GIANT-owned Starbucks café and a Beer Garden tied into the hot food counter and Starbucks’ seating area, allowing the store to sell beer. Other amenities include an on-site nutritionist and a Pinnacle Fast Care medical clinic branch of Pinnacle Health, Harrisburg’s leading hospital. Soon a PUP (Pick Up Point) will be added to the store, allowing customers to shop online and pick up their purchases at the store. It is another service that GIANT is rolling out to an increasing number of stores. 

Store manager J.P. Frattone has been with GIANT for four years, and finds the work environment and overall atmosphere much better than with previous employers. “Things are much more upbeat here,” he says, adding he sees much less turnover. “We have better working relationships. The morale is much better and that certainly makes my job easier.”

Fresh Hall

Hampden Township contains GIANT’s newest merchandising concept the Fresh Hall, grouping floral, produce, deli, prepared foods, bakery, meat and seafood all on one side of the store in a convenient-to-shop corridor.

“What is new for us is having the bakery on this side of the store,” Frattone says. “It makes it much easier for the customer to do all their fresh shopping right here on one side of the store,” he says, adding that it ties into the adjacent two-aisle Nature’s Promise natural and organic store-within-a-store. Sales there are up in the double-digits compared to the old store.

At GIANT, store managers and associates are encouraged to practice creative marketing techniques, like Frattone’s putting Nature’s Promise organic honey in front of the apple display.

“We give J.P. the power to cross-merchandise and make the assortment changes he needs to sell more stuff in his store and serve his customers,” Lenkevich says.

In the new store, the cheese case was more than doubled and in addition to a new location, the bakery was also expanded. According to department manager Becky Puliti, the store-fried donuts are a signature item, since all of the other chain competitors have switched to thaw-and-sell. “Our price is really competitive for fresh donuts, compared to people that have them pre-made,” she says.

Although the seafood case in the new store is smaller, sales are actually up, thanks to the Operation Thunder WOW Prices on fresh salmon and snow crab legs. “The salmon is now WOW priced at $7.99 a pound—and the customers love that,” says Donny Sienkiewicz, lead seafood manager. “Salmon is a huge seller in this store. Snow crab is WOW priced too, that’s dropped to $6.99 a pound. Customers are going crazy about that.”     

The Hampden Township GIANT is certainly reeling in shoppers with its WOW prices on seafood and other top-selling perishables, but shoppers should expect even hotter prices in the near future.

Directly across the street a lot has been cleared of trees and a large sign announces that Weis Markets will be opening soon. “It is comme ci, comme ça, but bring it on. We’re fine with that,” Lenkevich says. 

“G” is for “Giving Back”

Twenty-seven million dollars.

That is how much Giant Food Stores gave back in 2014 to the communities where it operates in cash and product donations from customers, vendors and associates.

Donations to regional food banks and local food pantries accounted for $12.2 million (45%) of overall contributions. Of that, approximately 86% came from safe consumable food donations, such as frozen meat and bakery items.

Last year more than 1 million pounds of meat were donated to regional food banks under the GIANT/Martin’s Meat the Needs program. The company freezes meat that would otherwise go unsold, but is still safe to consume, and donates it to regional food banks.

Children’s Miracle Network (CMN) is another favorite company charity. Last year the chain raised $3.5 million and has donated more than $37 million to local CMN hospitals since 1996, making them one of the top 10 CMN fundraisers in the country. GIANT/Martin’s also ranks No. 2 in per-store fundraising for CMN in the country.      

“These are extraordinary results that reflect the deep heritage and commitment our associates have to helping our neighbors,” says Tom Lenkevich, president of GIANT Food Stores, the Carlisle, Pa.-based division of Ahold USA operating stores under the GIANT and Martin’s banners.     

Regional USOs and the Wounded Warrior Project are helped through the annual Support Our Troops campaign, while local schools are supported through the A School Rewards program, tied into the BONUSCARD loyalty card program.

Then there are the local charities that each store has the liberty to support on its own volition. “What is really cool is what the stores do on their own,” Lenkevich says. “They are encouraged to be involved in the community. If they need funding they know what to do to get that funding to help do things to support the store’s local community.”

As an example, he cites what a couple of Martin’s stores near Fort Lee in Virginia did around the holidays. “They went down to the airport and did a welcome home party for our troops coming home in conjunction with the USO,” Lenkevich says. He proudly adds that the store managers did it on their own. “They had hot dogs, water, soda and snacks that they passed out to welcome them home. We didn’t tell them to do that. It wasn’t guided from the office,” he says. “The stores went out and did this on their own. You see that kind of stuff happening throughout the entire company. It is really cool.” 

“I” is for “Innovation”

GIANT or Martin’s portable scanner system is in place to expedite shopping trips by scanning and bagging orders as shoppers move through the aisles. 

A wall of Scan It! hand-held scanners greets shoppers right when they walk through the door. Shoppers simply scan their GIANT/Martin’s BONUSCARD, a scanner lights up and they take it and go.

“You can use the actual gun or you can grab your cell phone and download the GIANT app and use your phone instead,” says Christopher Brand, manager, community and public relations at Carlisle, Pa.-based GIANT Food Stores.  “You will still get coupon offers and things along that line.”

On a recent afternoon visit to the GIANT’s Hampden Township/Enola store in suburban Harrisburg, Pa., several of the Scan It! guns were out of their holsters. “A lot of people like Scan It!, especially those on a budget because it tells exactly how much has been spent as they go along,” Brand says. “It loads personalized coupons specifically based on BONUSCARD history. If somebody buys Brand X dog food, but there is a 50-cent coupon for Brand Y, it will ask if you’d like to try it. If purchased it automatically deducts the 50-cents right there.”

Scales in produce allow shoppers to weigh their items, print a label and scan the barcode on the label, while there is a Scan It! barcode on the price signs for individual bakery items, like bagels and donuts.   

Of course, speeding up that shopping trip might put a crimp in the one-on-one customer service for which Giant is known. “Instead of checking out at the end, you basically scan your items, put them in your buggy, pay for it up front and go,” says Tom Lenkevich, president. “This is really for those technophiles. A lot of people don’t want to have the interaction that we’ve been pushing so hard. They want three things: Come. Shop. Go. And that is okay too. We want to respect their space.”    

"A" is for "Associates"

Modern stores, low prices and amenities like Scan It! self-scanners are all fine, but according to company officials, what really sets GIANT Food Stores apart from the competition is the loyalty and dedication of its employees.

“I call it the ‘Secret Sauce’ of our business,” says Tom Lenkevich, president, GIANT Food Stores, a division of Ahold USA, based in Carlisle, Pa. “What makes our business special is truly our level of associate engagement. We really have a special bunch of people and our associate engagement has been developed over the years. They bring it to life for our customers each and every day.”

Numerous department and store managers have started out at GIANT as stockers, baggers, cart corralers and cashiers. “The majority of our full-time associates average almost 15 years of service, so there is a lot of longevity and our turnover rate in that group is under 10%,” Lenkevich says.

Given the nature of the business, the vast majority of GIANT employees are part-time workers, but the part-time and full-timers are often on an upward move. “One thing that is truly amazing to me is that more than 80% of our promotions within our company—last year alone—were internal,” Lenkevich says.   

“N” is for “Nutritionist”

Eating healthy is top of mind for nearly everybody. GIANT addresses that trend and currently employs 10 nutritionists throughout the company who service 12 of its 199 stores.

“We have the opportunity to form a relationship with customers like nobody else in the store can,” says Sarah Glunz, MS, CNS, LDN, and lead nutritionist, based out of corporate headquarters in Carlisle, Pa., as well as the Linglestown store in Harrisburg. “We are really finding out a lot about them, their lives and habits. We get testimonials and thank-yous from customers all the time.”

According to Glunz, last year the chain’s nutritionists conducted more than 2,700 consultations, along with classes and community engagements that educated over 17,000 adults and almost 3,500 children.

“We are truly doing a great job of reaching lots of people, some customers that maybe we would not have reached otherwise,” Glunz says. “One of the ways in which we are different than some of our competitors who might employ dieticians or nutritionists is that we are in the stores. Most of the nutritionists have just one store and their office is in that store. We truly believe that if people see us in the community or on TV that they also need to be able to come into the store and see us there.”

Shoppers pay $20 for a one-hour one-on-one consultation and receive a $20 GIANT gift card in return, so in effect the visit is free. However, all shoppers are also encouraged to call or pop in the office with any questions about any product, product comparison or health concern and the nutritionists are happy to help.

"T" is for "Timeline"

1923: David “D.J.” Javitch opens a two-man butcher shop in Carlisle, Pa., named the Carlisle Meat Market.

1937: Javitch buys a store in Lewistown, Pa., and names it the GIANT Food Shopping Center. The store offers dry goods and perishables under one roof—a new concept at the time.

1938: Carlisle Meat Market moves to a new location and becomes Carlisle’s first modern self-service supermarket.

1939: Carlisle Meat Market burns down but is completely rebuilt in 10 weeks.

1953: Carlisle Meat Market relocates and changes name to Carlisle Food Market. New features include a motorized checkout, 100-car parking lot and self-defrosting freezer cases.

1970: GIANT purchases the independent Martin’s store in Hagerstown, Md. Martin’s banner is used on new stores operating near then separate company Giant Landover’s operating area.

1973: GIANT marks its 50th anniversary by launching a seven-story hot air balloon from its newest store in Harrisburg, Pa.

1977: Meat Apprentice Training Program is introduced, giving associates hands-on experience in their position.

1979: GIANT operates 24 stores.

1981: GIANT/Martin’s is sold to Dutch retailer Royal Ahold Corp.

1990: A decade ahead of the environmental movement GIANT introduces reusable canvas shopping bags.

1997: Ahold merges GIANT with Edwards Super Food Stores (formerly First National Stores) expanding company footprint to New Jersey and New York. Edwards is later merged into Stop & Shop.

2000: BONUSCARD shopper loyalty card program introduced.

2005: First GIANT To Go gas station opens in Lancaster, Pa., and offers shoppers produce, deli sandwiches and bakery items. Super GIANT flagship store opens in Camp Hill, Pa.

2010: GIANT acquires 25 Ukrop’s stores in Richmond, Va. market and converts them to Martin’s banner.   

2012: GIANT acquires 15 Genuardi’s stores from Safeway in suburban Philadelphia.

2015: GIANT opens 200th store in Lewisburg, Pa.

Check out more pictures of GIANT here!