As the buy-side continues to shift, Giant Eagle has announced that it is offering to buy out as many as 340 corporate employees as part of a strategic plan to reduce overhead.
“Like many food retailers regionally and nationally, Giant Eagle has recently been impacted by various industry factors, including but not limited to deflationary trends in food pricing,” commented Dan Donovan, Manager of Corporate Communications for Giant Eagle, according to news source Trib Live. “The company has realized a need to maximize cost efficiencies, reduce overhead costs, and streamline our supply chain.”
Analysts have speculated that competition from discounters in the retail circuit have contributed to the market as well.
“It's all about the money and trying to keep the company profitable,” Milwaukee based grocery industry analyst David Livingston, told the publication. “It's a cost-saving move because that's what a buyout generally is about.”
The company prides itself on adaptability, however. As we reported previously, CEO Laura Karet named reinvention as key to keeping relevant.
Donovon commented that efforts to continue to streamline include “a voluntary separation offer made available to a number of team members in its corporate offices.”
Giant Eagle currently employs about 34,000 people in more than 420 locations, with annual sales totaling $9.6 billion.
Deli Market News will keep you informed of all the latest as key moves and strategies continue to be made in the retail circuit.