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Giant Eagle Inc., which opened four Good Cents Grocery + More stores in Northeast Ohio between 2008 and 2013, just announced plans to close all eight Good Cents stores -- including four Good Cents stores in Western Pennsylvania -- on March 26. The Ohio stores employed 125 people.
(Giant Eagle Inc.)
CLEVELAND, Ohio -- Citing "numerous business and economic factors," Giant Eagle Inc. is closing all eight of its Good Cents Grocery + More stores -- including four stores in Northeast Ohio -- at the end of business on March 26.
The Ohio locations are in:
1.) Eastlake, at 34700 Vine St.
2.) Ravenna, at 832 West Main St.
3.) Brooklyn, at 4798 Ridge Road, and
The stores collectively employ about 125 workers in Northeast Ohio. Giant Eagle said it is "working diligently to identify open positions at other area Giant Eagle Inc. locations for those interested in continuing employment."
Stores will remain open from 8 a.m. to 7 p.m. until they close March 26.
The Pittsburgh Business Times notes that Giant Eagle's decision comes about a month after Belgium's Delhaize Group closed all 66 of its discount Bottom Dollar Food stores on Jan. 12, cutting about 2,200 jobs in Ohio, Pennsylvania and New Jersey. Delhaize sold the locations to Aldi Inc. in a $15 million deal.
Related Plain Dealer stories:
Sept. 26, 2013: Good Cents Grocery opens today in Parma, Giant Eagle's 4th no-frills store in Northeast Ohio
May 26, 2012: Valu King is Giant Eagle's attempt to draw budget-minded shoppers
Good Cents, launched in November 2008 at the Eastlake store under a concept initially called "Valu King," was marketed as a no-frills, lower-cost alternative to brand-name supermarkets. Like Marc's, Save-A-Lot and Walmart Supercenter, they were meant to offer pantry staples and perishables "without compromising quality or a clean and safe shopping environment," the company said.
The stores offer organic and conventional produce, a full-service deli and meat department, and thousands of grocery items at discount prices. Like Aldi, Good Cents sells a limited number of national brands alongside private labels store brands such as Valu Time, TopCare and FoodClub. Stores also sell beer, wine and cigarettes at state minimum prices.
"This is a hybrid between a traditional supermarket and a value operator," said John Tedesco, senior vice president of Valu King, at the 2012 opening of the Brooklyn store. "We don't have the variety that you'll find in your typical supermarket, but we do have name brands. We won't carry every cereal in every size, but you'll see brands you recognize."
Tedesco said the stores saved costs by buying refurbished freezer cases and produce displays, by having employees dress in red T-shirts instead of uniforms, and by putting full cardboard cases directly on the shelves, instead of paying workers to unpack, price and stock items individually. Customers bag their own groceries at a counter behind the registers (those who didn't know to bring their own bags can buy them for a nickel each at the checkout).
Giant Eagle was pleased with how the Eastlake store performed, and expanded the concept into Ravenna (2009), Brooklyn (2012), and Parma (2013), renaming the stores "Good Cents" in 2012.
"After careful consideration and much deliberation, the decision has been made to discontinue operations of all eight Good Cents Grocery + More stores throughout western Pennsylvania and Northeast Ohio," Giant Eagle said in a written statement.
"While our Good Cents locations initially gained popularity, numerous business and economic factors have made it difficult to continue to successfully deliver the shopping experience customers have come to expect from Good Cents," Giant Eagle spokesperson Dan Donovan said. "We greatly appreciate the loyalty and patronage we have received since the stores' openings."
Carl Ivka, president of United Food and Commercial Workers Union Local 880, which represents workers at Giant Eagle, Heinen's, Dave's and other Northeast Ohio grocers, said via email that "We are sorry to see that these stores are closing, but are pleased that the jobs of our members are protected.
"Under the language of their Local 880 contract, they will move to their former Giant Eagle stores, maintaining their seniority, wages and benefits. Also, after discussions with Giant Eagle, it was determined that Giant Eagle will also offer the unrepresented employees jobs in nearby Union stores as well," Ivka said.