Giant Food Stores entered into an agreement to purchase 16 Philadelphia-area Genuardi’s stores for $106 million.
Included in those 16 stores are the Genuardi’s in Roslyn and the Genuardi’s in Huntingdon Valley.
Giant, a Carlisle, Pa.-based company, said it plans on converting the 16 Genuardi’s stores to Giant stores. Genuardi's is a subsidiary of Safeway, Inc. Safeway acquired the Genuardi's stores and name in 2001.
According to Giant Public Relations Manager Chris Brand, the conversion will take place over a three-week period in which there will be a staggered closing of the stores.
“Of course the agreement is subject to regulatory approval, it’s hard to say, but in the middle of this year, if we receive regulatory approval, we will move forward with the conversion over a three-week period,” Brand said. “Our plan is to take maybe five [stores] in the first week, and close them, and convert them from Genuardi’s, then five the next week …”
Brand said the average footprint of the Genuardi’s stores to be acquired is 50,000 square feet; he added that Giant will sink millions of dollars into the stores to upgrade them.
None is in danger of being closed, Brand said.
There are about 1,800 employees working at the 16 Genuardi’s stores in the purchase agreement. Brand said that they will go through an application process.
“There is a process in place for Genuardi’s associates to apply for [Giant] positions,” Brand said. “And we’re certainly encouraging all employees to do so.”
Giant recently closed its store on Old York Road in Abington, effectively telling its customers to shop at its Willow Grove store up the road.
Currently, there are about 40 Giant stores in the Philadelphia area; 13 of those stores are in Montgomery County.
Brand said the purchase of these 16 Genuardi’s stores would bring the total number of Giant stores to 199, operating in four states.
The sale will likely be completed by mid-2012.