SEP 2024
Blueprint for Success: Data, Loyalty, and Customer-Centric Innovation
In the dynamic world of grocery retail, Giant Eagle has carved out a unique position as both a regional leader and a trailblazer in adopting new technologies. Headquartered in Pittsburgh, this privately-owned company operates nearly 500 locations and employs around 34,000 people. With annual revenues of approximately $11 billion, Giant Eagle has cemented its status as one of the most respected and forward-thinking grocers in the United States.
Giant Eagle recently made waves with a strategic decision to sell its GetGo gas station-convenience stores to Alimentation Couche-Tard, a move that allows the company to sharpen its focus on its core supermarket and pharmacy operations. CEO Bill Artman explained, “This enhances our focus on our core supermarket and pharmacy businesses, strengthening Giant Eagle and better enabling us to make strategic investments in our people, stores, and value proposition.”
Artman, who stepped into the role of CEO after longtime leader Laura Shapira Karet, brings a customer-centric approach that aims to combine tradition with innovation. "My focus is, and always has been, on delivering for our customers and the neighborhoods in which we operate," says Artman. "We’re looking forward to raising our game." Under his leadership, Giant Eagle is balancing the need to maintain the company's close-knit culture while driving an aggressive digital transformation.
One of the standout aspects of Giant Eagle's transformation is its commitment to leveraging data to enhance the shopping experience. The company has implemented a master data management system that provides real-time insights across various facets of the business. This system ensures that decision-makers have a clear, unified view of data, allowing them to manage inventory effectively, optimize margins, and tailor product offerings to the specific preferences of local communities.
In the realm of e-commerce, Giant Eagle made headlines by opening its first automated micro-fulfillment center (MFC) in Pittsburgh. This center, designed to streamline order fulfillment for curbside pickup, is just the beginning. The company plans to expand its use of MFCs, recognizing that automation is a crucial component in the future of grocery retail.
Additionally, Giant Eagle’s loyalty programs have also benefited from cutting-edge technology. By partnering with mParticle, a customer data platform, the company has managed to increase revenue by 15%. This platform powers its myPerks loyalty program, allowing for hyper-personalized customer experiences across digital and physical channels. "Our customers expect more from us, and I'm committed to delivering that," says Artman.
My focus is, and always has been, on delivering for our customers and the neighborhoods in which we operate, while providing the support our team members need to deliver the best experience possible.
Technology at the Heart of Operations
A Focused Business Strategy
Giant Eagle's efforts to reinvent the customer experience go beyond data and automation. Earlier this year, the company took significant steps in the omnichannel and loyalty spaces. Its partnership with the Upside mobile app allows customers to access personalized cashback promotions, stacking additional savings on top of the already popular myPerks loyalty program. These efforts have paid off, with 56.4% of new or non-loyalty customers choosing to join the myPerks program after using Upside.
Furthermore, Giant Eagle has embraced the growing importance of retail media through its Leap Media Network. By linking its platform to Rippl, a data and media network, Giant Eagle provides advertisers with access to 70 million anonymized shopper profiles. This partnership allows the company to compete with larger rivals by offering targeted advertising opportunities across multiple regional grocery chains.
One of Giant Eagle’s more forward-thinking initiatives involves preventing waste and shrink, particularly in perishable goods. The company has adopted SmartSense by Digi, an Internet of Things (IoT) monitoring solution, across all its stores to track the condition of refrigerated items. This technology helped preserve $72 million worth of inventory in 2023 by alerting staff to equipment malfunctions before they became critical.
By monitoring environmental conditions digitally, Giant Eagle not only prevents shrink due to spoilage but also ensures that its food items meet the highest standards for quality and sustainability. According to Vic Vercammen, Giant Eagle's Vice President of Safety, Regulatory, and Government Affairs, "We’re leaning into more fresh offerings because we have confidence that our coolers, refrigeration, and display cases will always work to specification."
Looking ahead, Giant Eagle plans to further leverage the data it collects from these sensors to reduce energy usage, positioning itself as an environmentally responsible retailer.
Reinventing Customer Experience and Delivery
Environmental Responsibility and Shrink Prevention
Giant Eagle has also overhauled its category and space management through the use of Blue Yonder's SaaS-based solutions. This transformation allows the company to automate product placement decisions, manage SKUs across multiple brands, and optimize the customer shopping experience. Scott McNeely, the company’s VP of Merchandising Planning, Operations, and Analytics, explains, “The automation capability of Blue Yonder’s category management solution has allowed our staff to refocus on more valuable things like building stronger partnerships, elevating our space management strategy, and applying analytics to decisions.”
What sets Giant Eagle apart from its competitors is its seamless integration of tradition and innovation. The company has managed to stay true to its roots while embracing cutting-edge technology that improves operations, enhances customer satisfaction, and drives growth. From automated fulfillment centers to IoT-based monitoring systems, Giant Eagle is a leader in adopting new technologies to improve both the customer experience and operational efficiency.
Moreover, the company’s commitment to customer loyalty and personalized service is reflected in the success of its myPerks program and its strategic partnerships with technology providers like mParticle and Upside. By continually evolving and adapting to new retail challenges, Giant Eagle is ensuring its place at the forefront of the grocery industry.
Giant Eagle's relentless focus on innovation, customer satisfaction, and operational excellence has enabled the company to thrive in an increasingly competitive grocery market. Whether through its automated micro-fulfillment centers, data-driven loyalty programs, or efforts to reduce waste through IoT technology, Giant Eagle is setting the standard for what a modern grocery chain can achieve.