Cincinnati-based grocery retailer Kroger will close a its $1.65 billion deal to purchase Giant Eagle in 2027, adding nearly 200 more supermarkets to its portfolio.
But as part of that deal, Kroger will likely sell some Giant Eagle locations in Columbus. Here’s why the chain may shed some of its newest stores.
Kroger to acquire Giant Eagle in $1.65 billion deal
Kroger will buy Pittsburgh-based Giant Eagle for $1.65 billion, acquiring its 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. The move comes on the heels of Kroger’s failed merger with Albertsons, another grocery chain.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Kroger CEO Greg Foran said in a news release. “We evaluated the opportunity carefully, and the strategic fit is clear.”
The deal is comprised of $1.25 billion in cash from Kroger and about $400 million in debt from Giant Eagle that Kroger will assume, according to the news release.
The deal is expected to close in 2027.
Kroger plans to shed Giant Eagle stores in Columbus, according to report
With about 18 Giant Eagle locations in Columbus, Kroger plans to sell some Giant Eagle stores in that market to avoid store overlap and soothe antitrust issues, according to Supermarket News.
Currently, the Columbus market appears to have the most market overlap, often with with Kroger and Giant Eagle locations on the same block. Kroger currently has the No. 1 grocery market share in Columbus, with about 43% of the market, Supermarket News reports.
Kroger has about 40 locations in the Columbus area, while Giant Eagle has 18.
What is Giant Eagle?
Giant Eagle began as the Eagle Grocery in 1918, opened by the families Goldstein, Porter, and Chait, according to the chain’s website. In fact, after Eagle Grocery expanded to 125 stores, it was sold to the Kroger Company in 1928.
Later, in 1936, the first Giant Eagle store was opened by five families: Goldstein, Porter, Chait, Moravitz, and Weizenbaum.
These stores expanded throughout Pittsburgh-area neighborhoods and eventually throughout Pennsylvania, Ohio and other states.
How many Giant Eagle stores are in Ohio?
Ohio currently has 94 Giant Eagle locations, according to ScrapeHero. Most of those are concentrated in the Columbus area and Northeast Ohio. You can find a Giant Eagle near you using their store locator.
Giant Eagle has more than 470 total locations, according to its website.
Giant Eagle is major employer in Ohio
Founded in 1931, Giant Eagle has more than 200 stores throughout the region, $9 billion in annual sales and had remained family-owned since its founding.
It is the 12th largest employer across Ohio, with an estimated 17,400 employees across the state, according to the Ohio Department of Development.
This article originally appeared on Cincinnati Enquirer: Kroger to sell Giant Eagle stores in Ohio amid $1.65 billion deal
Reporting by Mariyam Muhammad, USA TODAY NETWORK / Cincinnati Enquirer
USA TODAY Network via Reuters Connect
By Mariyam Muhammad, USA TODAY NETWORK | USA TODAY Network
