Dive Brief:
- Giant Eagle announced it is putting $25 million toward lowering prices on more than 200 produce items by an average of 20%.
- The New Low Price initiative at Giant Eagle and Market District stores will include many of the most popular items in the produce department, the grocer said.
- Giant Eagle is aiming its multimillion-dollar price investment at a key, high-frequency category as consumers continue to worry about their finances.
Dive Insight:
Giant Eagle, which like other grocers has faced considerable pressure from low-price competitors recently, said the produce price reduction is meant to help promote “long-term, meaningful value in a fresh department that customers and their families prioritize.”
The price cuts include lowering the cost of Jumbo Naval Oranges by 25 cents each, seedless cucumbers by 50 cents each and broccoli by $2 each. Several Giant Eagle-branded items are included, such as whole white mushrooms, which are 50 cents cheaper per 8-ounce package, and matchstick carrots, which are $1.30 less per bag.
More than half (58%) of people in the U.S. say they eat fresh produce at least four to five days a week, according to data Giant Eagle cited from FMI — The Food Industry Association’s 2023 Power of Produce report.
“In these challenging economic times, we’re proud to make the fresh, quality produce we stock daily more affordable and we believe these savings will make a real difference in people’s lives,” Brian Ferrier, Giant Eagle’s senior vice president of merchandising, said in the announcement.
Giant Eagle noted that food prices remained elevated throughout this year.
As companies like Walmart have cut into Giant Eagle’s sales, the grocer has fought back by launching and promoting various price-saving initiatives. These include weekly, one-day and three-day sales as well as its its seasonally focused Deals for Days and savings through the myPerks loyalty program. In May, Giant Eagle unveiled rotating seasonal price cuts, saying it would lower prices on more than 1,000 summer items during the first round of its new Deals for Days promotion.
Grocery inflation has slowed considerably in 2024 in comparison to prior years. Food-at-home prices were up by 0.9% in August compared with the same time last year — the first time since June 2021 that grocery inflation has come in below 1%, according to data from the U.S. Bureau of Labor Statistics’ Consumer Price Index.
Giant Eagle has more than 470 stores throughout Pennsylvania, Ohio, West Virginia, Maryland, and Indiana.