Giant Food To Get $175M Capital Infusion; Stop & Shop Also Gains

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After nearly a decade of minimal store-driven capital investment, the Ahold USA banners in the Ahold Delhaize USA lineup will be getting considerable attention over the next few years.

Earlier this year, the best performing unit within the original Ahold USA network – Giant/Martin’s – was given $70 million in store improvement funding. That investment will yield six new stores, five new fuel stations and two major remodelings. The Carlisle, PA-based brand also recently acquired and last month opened a new Lancaster, PA location that was previously owned by the Darrenkamp family. It plans to open its first Giant Heirloom Market next month in Center City Philadelphia, its first small format model. And in October, the division acquired five Shop ‘n Save stores in Maryland, Pennsylvania, West Virginia and Virginia from UNFI. Those stores were formerly Food Lion stores before the government ordered them to be divested as part of the Ahold-Delhaize merger in 2016.

At Stop & Shop, Ahold Delhaize’s largest brand, the Quincy, MA merchant will also be receiving substantial capital over the next five years. In the last two months, the division spent approximately $70 million upgrading 21 stores in the Hartford, CT market where it long has controlled the lion’s share of market. Next up is revitalizing its more than 50 stores on Long Island and by 2023, the Amsterdam-based organization is expected to spend as much as $2 billion remodeling Stop & Shop’s more than 400 stores that cover the New England and Metro New York markets.

And earlier this month, the third original Ahold USA banner – Giant Food – said it would be receiving $175 million targeted for store improvement and market expansion over the next two years. This significant expenditure will include one new store and 24 store remodels. These efforts are in addition to the recently announced $21 million investment into a new Giant in Olney, MD, set to open in spring 2019.

“As the region’s leading grocer, this announcement is part of our long-term commitment to deliver a consistently exceptional experience for our shoppers,” said Gordon Reid, president, Giant Food. “We look forward to updating and enhancing our existing stores and constructing both new and replacement locations to give our shoppers a fresh and imaginative selection, unique in-store experiences and superior customer service.”

The brand-new store will be located in Fairfax Circle, VA. Giant opened two new stores in Herndon, VA and Alexandria, VA earlier this year on November 9 and November 16, which allowed additional space for updated amenities and increased product selection.

In addition, Giant will also be remodeling 24 store locations to feature enhanced perishable departments including produce, beer, wine and spirits offerings, full-service florists, expanded natural and organic departments, hot Asian food bars, fresh squeezed juice bars, enhanced check-out zones, full-service pharmacies and more.

As a result of the new projects, Giant anticipates the creation of approximately 500 new jobs in the communities it serves through the hiring of full and part-time associates.