Kroger Pays $1.65 Billion for Grocery Chain Giant Eagle

Kroger is set to acquire Pennsylvania-based grocery chain Giant Eagle for $1.65 billion.

The deal, announced Wednesday (July 1), expands Kroger’s footprint in the western part of Giant Eagle’s home state as well as in Indiana, Maryland, Ohio and West Virginia.

“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Kroger CEO Greg Foran said in a news release.

“We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.”

The release touted the benefits of Giant Eagle’s established store base, loyalty program, pharmacy business and its portfolio of private label products, coupled with Kroger’s eCommerce solutions, data and personalization capabilities and operating discipline,

Together, these factors present a “significant opportunity to accelerate growth both in-store and online, enhance the customer experience and create long-term value for shareholders,” the release added.

In an announcement on its website, Giant Eagle notes that its stores will retain their name. Giant Eagle operates 197 stores and 11 standalone pharmacies, taking in around $9 billion in annual sales, per the news release.

The deal comes as Kroger is facing increased competition from German grocery chain Aldi, which is spending $9 billion on an expansion plan aimed at giving it more locations than Kroger.

“We don’t know what the ceiling is,” Scott Patton, Aldi USA’s chief commercial officer, said in an interview with the Financial Times last month. “We’re trying to take market share from anyone who sells groceries.”

Kroger last month reported a slight uptick in sales — 1% for the quarter, compared to 3.2% for the same quarter in 2025 — as consumers grow more cautious.

“The customer is under pressure,” Foran said during an earnings call. “High gas prices and reduced SNAP benefits are squeezing budgets. Customers are managing spend carefully and shopping with real intent. That pressure is showing up in the market.”

The selective behavior Kroger reported from its customers is in keeping with PYMNTS Intelligence research, which has shown that financially stressed consumers across generations routinely point to grocery costs as a hardship.