Pittsburgh area shoppers will soon find out if increased competition from out-of-state players can help remedy dissatisfaction with grocery prices, quality, and selection.
Pittsburgh Shoppers Not Happy With Grocery Store Landscape
In August, KDKA reported that Numbeo, a crowdsourced cost of living database, had ranked Pittsburgh as the 9th most expensive city in the country for groceries, landing among New York City, San Francisco, and Boston.
The numbers seem shocking, but Pittsburgers aren’t surprised at all. Comments under KDKA’s reporting on the grocery price ranking read, “no competition,” “class B freshness,” and refer to existing stores as “price spikers.”
Competition exists but it’s neighborhood-dependent, making convenience an issue when it comes time to practically compare options. Some neighborhoods are getting more action than others.
According to data from Grocery Dive, Giant Eagle and Walmart are neck-and-neck, capturing about a quarter of the grocery market each, while other options like Costco, Aldi, Sam’s Club, and Target are commanding closer to 5-10% each.
New Options Enter Market While Mainstays Shake Up Strategies
Multiple brands have announced they’re coming to or expanding in the greater Pittsburgh area, raising the possibility of an increased density of competition.
The Fresh Market East Liberty
The Fresh Market, known for its high quality proteins and elevated experience, is taking Whole Foods’ former retail space in East Liberty — and possibly the space in shoppers’ minds for the “culinary elitism,” that the now-Amazon-run chain used to be known for. Perceptions of Whole Foods, particularly in the produce category, have declined dramatically over the past year.
Meijer Cranberry Township
Meijer, a Michigan-based grocery chain best known for its supercenters, announced it had begun purchasing properties in Western Pennsylvania and has since submitted a plan for a location in Cranberry Township.
Representatives from Meijer note recent success in nearby Youngstown, Ohio as a sort of proving ground for entering the suburbs of Pittsburgh next. Selling everything from groceries to prescriptions and clothing, the supercenters pose a challenge to Walmart’s reign.
Wegmans Cranberry Township
Another out-of-state favorite, Wegmans, announced that their first foray into the Pittsburgh area will be in Cranberry Township as well. Store planning leadership from the company said they’ve received “thousands of requests” for a location in the Pittsburgh region since they first opened in Pennsylvania decades ago.
But… Giant Eagle Remains as Stiff Competition
Meijer’s reputation as a charitable community partner challenges one of Giant Eagle’s main differentiators as the family-owned mainstay. Amid rising food costs and competition, Giant Eagle is betting on a new pricing strategy and other revamps to try to win back and maintain customer loyalty.
They recently announced a $100 million “Because It Matters” program that includes lowering prices on hundreds of items, improving quality and service, and upgrading the in-store shopping experience. $1 flash deals, supply chain reviews for perishables, training butchers and cheese mongers, and interior renovations are all on the table at the region’s traditional leader in the grocery category.
Story by Samantha Leon
Photos Courtesy of The Fresh Market and Wegmans
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