Giant Eagle launches Scan Pay & Go service

The Pittsburgh-based Giant Eagle supermarket chain recently launched Scan Pay & Go, a service that enables customers to use their phones or a store-provided device to scan groceries as they shop. The service allows shoppers to keep track of how much they are spending and experience a faster checkout process.

Scan Pay & Go is currently available in two Market District and three Giant Eagle stores.

Giant Eagle operates over 400 food, fuel and pharmacy locations, including over 200 supermarkets, in PA, OH, WV, IN and MD.

Giant Eagle to close Good Cents stores in PA, OH

Giant Eagle said last week that it plans to close all eight of its Good Cents discount grocery stores. The decision follows Food Lion's closure of all Bottom Dollar stores last year, which leaves Aldi and Save-A-Lot as the lone discount supermarket chains in the Western PA and Northeastern OH markets.

The company cited "numerous business and economic factors that made it difficult to continue to successfully deliver the shopping experience that customers have come to expect."

Good Cents discount grocer to debut in Pittsburgh

Discount grocery store "Good Cents Grocery + More" will open its first location this month in Pittsburgh. Owned and operated by Giant Eagle, the new banner will compete directly with Bottom Dollar.

Giant Eagle already operates seven Valu King discount grocery stores, but said the new concept is "an evolution" of the Valu King format.

Giant Eagle is a privately held company with nearly 400 retail locations in Pennsylvania, Ohio, West Virginia and Maryland. The company is based in Pittsburgh.

Valu King to compete with Bottom Dollar in Pittsburgh

Giant Eagle, the Pittsburgh, PA-based supermarket, said on Monday its discount grocery brand Valu King will expand into the Pittsburgh market. According to the company's website, Valu King has four stores in Ohio and three in Pennsylvania. The PA stores are in Johnstown and Erie (2).

Bottom Dollar, a Delhaize brand that currently has 27 stores in Eastern PA and Southern NJ, entered the Western PA and Youngstown, OH markets earlier this year (see Delhaize to eliminate Bloom, open 7 Bottom Dollar stores this week). The discount grocer now has 14 stores open in that area, according to its website. Eleven of the 14 are in Western PA, with 3 in Youngstown.

Reportedly, Valu King's first store in Pittsburgh will be in a shopping center that already has plans to include a Bottom Dollar store. 

Hurricanes increase wine sales, not kiosks

Before we get to the hurricane, let's talk about the wine kiosks...

According to a special performance audit by PA Attorney General Jack Wagner, the Liquor Control Board's wine kiosk program has fallen short of established goals. Currently there are 22 kiosks operating in supermarkets owned by Giant Eagle, Giant Food Stores, ShopRite, The Fresh Grocer and Shop 'n Save. Wegmans had several kiosks but recently ended its participation in the program, and Wal-Mart announced last week that they would not install 23 kiosks in its stores, as previously planned.

Wagner's report states the following:

• From 1/29/09 through 3/31/11, the kiosks showed net income of $206,060 with total operating costs of $1,131,375.
• 20 of the 32 kiosks that were operating during the audit period failed to meet the minimum weekly sales threshold.
• All kiosks had to be shut down in the height of last year's holiday season due to mechanical and technological malfunctions.
• 919 malfunctions were reported in a six month period last year, and 118 additional malfunctions were reported in the one-month period after the original malfunctions were repaired.

The report also suggests that the Liquor Control Board (PLCB) "take immediate steps to terminate its contract with Simple Brands LLC of Conshohocken if kiosk operations cannot be modified to meet the originally stated objectives."

Now, about the hurricane... The Philadelphia Inquirer reported yesterday that liquor store sales saw a large spike in the days leading up to Hurricane Irene. According to the PLCB, sales for the week ended Saturday (8/27) were $37 million, which is up $5 million (15%) over the same week a year earlier. Sales for Bacardi's Hurricane mix? Up 311%.

The sales increase for the two days prior to the hurricane were undoubtedly far greater than the overall weekly increase, although the PLCB only shared the weekly numbers. There are no stats currently available that quantify the aspirin intake on the following mornings.