Giant Eagle Completes Rollout of End-Cap Optimization System

MICHAEL GARRY

PITTSBURGH — This month Giant Eagle here completed the rollout of a store-specific endcap optimization system to all of the 54 independent supermarkets that carry its banner.

The chain had finished implementing the system at its 168 corporate stores last winter, completing a process that began in the fall of 2008.

The system, from Galleria Retail Technology Solutions, Chicago generates store-specific planograms for creating the endcap displays. Giant Eagle applies the tool to all edible and non-edible grocery categories, and occasionally to general merchandise and health, beauty and wellness categories, said Stephanie White, Giant Eagle’s vice president of sales systems and operations.

White confirmed business impacts of the optimization system reported in a Galleria case study. On average, she said, the system has increased sales up to 18%, margins up to 5%, and product availability up to 8%; it reduced post-promotion inventory by up to 15%, inefficient inventory 5% to 10%, and labor/replenishment costs up to 10%. The system has also increased promotion compliance by more than 95%.

“We have worked closely with Galleria to create a tool that meets our specific needs, and thus far have been extremely pleased with the results,” White said. “While we realize that we are not utilizing the tool to its fullest capacity, in a given week we create up to 3,500 store-specific end-cap planograms.”

Three full-time employees are responsible for creating the planograms. She declined to state the cost of the system.

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