Giant Eagle plans to use $1.6 billion sale of GetGo to remodel grocery stores, add new ones, reduce prices and grow its pharmacy presence. The company’s CEO, Bill Artman, stated that the sale allows for reinvestment in the business.
The grocer will update about 25 grocery stores and start others from scratch, with investments costing hundreds of millions of dollars over five years. Additionally, tens of millions of dollars will be spent on reducing prices, continuing an initiative to cut costs for customers.
Artman also mentioned that Giant Eagle may purchase additional pharmacies from Rite Aid, which is unwinding its business as part of bankruptcy proceedings. The company has already purchased prescription files from 83 Rite Aid stores across Pennsylvania and Ohio, translating to about 6 million additional prescriptions annually.
In the coming years, workers will see some of the windfall in the form of pay raises under a recently ratified contract with more than 5,000 union employees, offering between 3% and 5% increases each year.
Source: https://triblive.com/local/regional/giant-eagle-to-use-getgo-sale-funds-for-store-upgrades-ceo-says