Giant Eagle CEO Bill Artman clarifies sale of GetGo

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Get Marty

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00:00I was kind of blown away, and I know you were when we heard that Giant Eagle was selling the get-go stuff, right?

00:05Oh, I was surprised. I mean, because they obviously are very popular in this area. Whenever we go to the get-go near us,

00:11it's packed, sometimes to the point that cars are like backed into the street.

00:17And

00:18one of my friends, as it turns out, and I love the guy, and he knows it, is Bill Artman, the CEO and chair of

00:23Giant Eagle. Good morning, sir. How are you?

00:26Good morning, Marty. I'm great. Thanks for having me on.

00:28I think

00:30the first thing that people

00:32know, I don't think I know, the first thing they thought when they heard about you getting rid of get-go is, uh-oh,

00:38there go my perks. Can you explain, please, sir?

00:41Yeah, we heard that a lot over the last couple days. Everyone's perks are safe.

00:46Not only are they safe, but we're excited that working together with CouchTard, the acquirer of get-go,

00:52we're going to be able to expand the program, which is going to be in the best interest of our customers

00:56and our team members as well. So good things to come.

01:00You say expand. What do you mean?

01:03Well, we're looking for ways, um, as CouchTard comes over,

01:06they're going to continue to maintain the Giant, the get-go brand, which was important to us.

01:12Our get-go team has done a wonderful job, and thank you for shopping both get-go and Giant Eagle.

01:16Yeah. They've done a wonderful job since 2005, you know, building this brand, and now it's 270 stores across the five states we operate.

01:24They want to continue to operate get-go.

01:26They came to us because they really like the brand, and they felt that our team members did a great job.

01:31We had high standards. They loved our loyalty program, which is my perks,

01:35and wanted to figure out how they could learn from us, quite frankly, on how to be better in food, etc.

01:43One of the reasons they wanted to acquire us, or many reasons that they wanted to acquire us,

01:47this could lead to, although I can't speak for them,

01:50but it could lead for the opportunity to redeem my perks in additional locations,

01:55the Circle K's, which are in a geographic area, but, you know, we're not there yet.

01:59We're working through the details.

02:00Most important point is that get-go brand is going to continue to remain in the markets.

02:05My perks, everyone's loves, are going to continue,

02:08and our team members are going to continue to have jobs working in the get-go.

02:11Yeah, that all sounds fantastic.

02:14Will we see something different, or will we notice a change at some point, do you think?

02:18No.

02:20Initially, you won't notice any change. This is going to take a few months.

02:23We don't anticipate this to close until sometime in, hopefully, early 2025.

02:28We're working together now on what this is going to look like,

02:32how we're going to transition the services.

02:34This should be seamless to our customers and our team members.

02:37Hey, Bill, not only did they want this deal, you wanted this deal.

02:41You worked on this for months.

02:42Why did you want to, and I hate to use this word, but dump get-go.

02:46Why is that important to you and the future of Giant Eagle and for the customers?

02:52Yeah, well, thank you for clarifying the dump get-go.

02:55This was a no-way dump.

02:58I used this this morning talking to a group of folks.

03:00This is like building your house and raising your kids,

03:03and you have all these memories, and you're proud of the house that you've created.

03:08We're really proud of get-go and what our team members have created.

03:11This wasn't simply a transaction to say,

03:13how can we go and sell this for the highest price?

03:15We wanted to make sure someone was going to come in and provide the TLC

03:19that we've provided over all these years,

03:20and our customers have come to expect that from the get-go brand.

03:24The fact that a company that was interested in us for all the reasons that we value,

03:28which was people first, also high-quality offerings,

03:32and continuing the MyPerks was really important,

03:34and we wanted to make sure we were making the transaction,

03:37but also partnering with the right people long-term.

03:40How it pertains back to the Giant Eagle brand,

03:42Marty, you and I have talked numerous times over the interviews we've done

03:47that price continues to be a factor in where our customers make their decisions.

03:53There's new competition that's talking about coming into the area.

03:56I can't control what other people can't do,

03:59and being able to go back and reinvest in the value proposition,

04:03reinvest in price that our guests are going to appreciate,

04:07as well as build new stores and invest back in our communities by remodeling our locations.

04:13And then also keeping that loyalty program strong.

04:16It's really a win-win for everybody involved.

04:19So what is the real reason for this transition here?

04:26Gives us an opportunity to focus on the supermarket and pharmacy business.

04:30Gives us an opportunity to make a sale to an international organization

04:35who is a leader in this industry.

04:38We continue to get the benefit of the Fuel Perks offering.

04:42Our customers get the benefit of a brand that they can appreciate and they've learned to trust.

04:46And really allows us to focus on being the best version of ourselves

04:51as it relates to supermarket, food prices, and pharmacy.

04:55And Marty, as we talked about a couple of weeks ago,

04:58Newsweek named Giant Eagle Pharmacy as the best in the country.

05:01And that's something we're very proud of.

05:04And think about a regional grocer and a regional pharmacy to get that type of honor.

05:09But we're going to continue to focus on being the best we can be.

05:12And when I took this job over, call it 16 months ago at this point,

05:17I committed that we were going to think like our customers, not for them.

05:19And this is an example of that.

05:21I love you.

05:21You know that.

05:22And your people love you.

05:24But they're a lot, because we shop there.

05:26They're like our family, the pharmacists.

05:28I swear.

05:28How are you feeling?

05:29How's Rosie?

05:30They know our damn dog.

05:31I mean, they're just cool.

05:33Honey, it really is.

05:34They've watched our kids grow up at Giant Eagle.

05:37Yeah, they have.

05:37So what can you tell them about the future for their job, sir?

05:42The future is bright.

05:44You know, we have a three-year strategy that we're executing as we speak.

05:48We're thinking about this long term.

05:50We're thinking about how we can continue to grow in the area and invest via new stores, etc.

05:57We have a 93-year history as a company.

06:00And we're very proud to operate not just in Pittsburgh,

06:03but also in the Cleveland area, in the Akron area,

06:05and across the five states in which we're in.

06:08This is a good move to help solidify our position in the market.

06:12Hey, this is out there.

06:14I'm not sandbagging him on this.

06:16Bart Friedman is the chair of your board.

06:19He's a merger and acquisition specialist.

06:22There's this buzz because of that, sir.

06:24And because of what's happening is that this is just a precursor

06:28to Giant Eagle selling out and selling completely in the next year or two.

06:32Can you address that, sir?

06:34Yeah, but first off, Bart's a wonderful, a wonderful man

06:38and a great director of our board and leader of our chair of our board.

06:43I'm in no talks to sell Giant Eagle.

06:47We are solely focused on the strategy that we have deployed.

06:51And we believe this is going to give us the necessary resources to go execute that strategy.

06:56But there are currently no plans to sell Giant Eagle.

06:59But you can hear how that's out there, the rumbling, sir.

07:03Marty, yeah, I can understand how it's out there naturally,

07:07whereas also acknowledging all the consolidation

07:10that is potentially happening throughout the country.

07:13It's a natural concern.

07:15But, you know, we've been linked to potentially selling Giant Eagle,

07:20you know, for many, many, many of years.

07:22And, you know, if there was if there was plans to do that,

07:26or if and when that time ever comes, I'll be on this,

07:30on your program, volunteering myself to explain why it makes sense at that time.

07:34But that is currently not not in the cards.

07:36And Bill, at the Democratic convention,

07:38they talked about trying to prevent price gouging at the grocery store.

07:42Nice.

07:42I know they're not necessarily accusing groceries

07:46chains of doing that more the producers.

07:48But are you seeing that?

07:49Do you think that's happening?

07:53Price gouging is not happening at Giant Eagle.

07:55It didn't happen during the pandemic.

07:57It's not happening now.

07:58Inflation is real.

08:00Shrinkflation is real.

08:01All the terms that you hear, that's all real and accurate.

08:04But, you know, the prices of groceries go all the way back through the supply chain,

08:08just not what you see at the shelf.

08:09It's the cost of shipping the goods.

08:12It's the manufacturers passing on goods.

08:14The shelf price just happens to be the end.

08:16And the customer receives the end of that chain.

08:19And so this isn't just about, I'll say the industry,

08:24because I don't want to make it a Giant Eagle topic.

08:25But this is about fixing the supply chain and the cost associated with that

08:30at the beginning, not just focusing on the end.

08:33Bill Artman, the big dog, as they call him at Giant Eagle.

08:37Thank you, sir.

08:39I appreciate you.

08:40Anytime.

08:41Thanks so much for the time.

08:42And take care of yourself.

08:44Talk soon, Marty.

08:45You know what he does, honey?

08:46He answers the call.

08:48And very few do.

08:50And that's the damn truth.

08:51And that's why I love him.

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