New Giant Eagle could heat up competition among retailers
Wednesday,  May 13, 2009 3:19 PM
ThisWeek Staff Writer
Kingsdale is at the threshold of an upscale makeover, and the Giant Eagle is poised for a more up-market profile. But in community that already has a couple of stores catering to foodies, will there be customers enough to go around?

If any area can support multiple, competing stores, it's Upper Arlington, said local retail consultant Chris Boring of Boulevard Strategies.

"The demographics are very good, and that's why they've attracted the high-end grocery stores," Boring said. "The question is, how much is enough?"

With last week's approval of Echo/Continental's redevelopment plans for the Kingsdale Shopping Center by Upper Arlington City Council, construction of the new Giant Eagle store is expected to begin in August.

Giant Eagle will relocate from its current, 56,000-square-foot space on Tremont Road to a new, 110,168-square-foot space on Northwest Boulevard. The new store will be the chain's first "Market District" store in Ohio.

The brand is geared toward aficionados of fine cuisine and wine, said Kevin Srigley, senior VP in charge of new formats.

"You get all that a 'foodie' is looking for, but you still can get mainstream grocery items," Srigley said during an April 27 presentation.

The Market District concept is similar to offerings in stores such as Whole Foods, which took over the former Wild Oats location at the Shops on Lane Avenue, and Fresh Market, located in the Northwest Center at 1920 W. Henderson Road.

A Fresh Market representative said the company is confident that the new-and-improved Giant Eagle will not infringe on the niche Fresh Market has carved out.

"The Fresh Market competes successfully with Giant Eagle and others in many markets," said spokeswoman Jennifer Foushee. "We believe we offer a unique shopping experience and that there is room for everyone, especially in a market the size of Columbus."

Whole Foods representatives did not return requests for comment.

"I do think there will be increased competition at the higher end of the grocery market in Upper Arlington," Boring said. What remains to be seen, he said, is whether there is "is there enough spending to go around, particularly if the poor economic conditions persist."

Giant Eagle's first Market District store opened in Pittsburgh in 2006. The Pittsburgh store has hosted cooking demonstrations by nationally renowned-chefs such as Gourmet Magazine editor-in-chief Sara Moulton, live music, holiday-themed events, a farmers market and other special programming.

Giant Eagle representatives say Kingsdale is an ideal location for the Market District brand.

"Columbus in general is a wonderful market in terms of diversity, demographics," Srigley said. "They've really shown a passion for food in our existing stores."




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