When Ahold Delhaize USA implemented its decentralized merchandising plan on January 1, 2018, some merchandising and related activities for its Giant Food “brand” (primarily dry grocery) were not fully autonomous. Instead, merchandising services in those categories were shared with its largest “brand” Stop & Shop, Quincy MA.
Effective at the end the third quarter of 2020, that agreement will end and the Landover, MD division will become a fully autonomous merchandising entity, joining Stop & Shop, Giant/Martin’s, Food Lion, Hannaford and its Peapod digital platform.
Those details were revealed below in an email to the retailer’s vendors and signed by Tonya Herring, senior VP-merchandising for Giant Food, and Mark Messier, executive VP-merchandising for Stop & Shop.
Dear Valued Supplier,
Since early 2018, Stop & Shop and Giant Food have been operating under a merchandising services agreement through which Stop & Shop provides merchandising services for the Giant Food brand. Based on a review of the program, Stop & Shop and Giant Food have decided to discontinue this agreement. The transition will take place in phases between Q3 2019 and the end of Q3 2020.
This opens an exciting new chapter for the Giant Food merchandising organization, which will stand up its own category, promo entry and cost & deals teams. As part of Giant Food’s newly launched Great Food Made Easy brand strategy, these strategic shifts give Giant Food greater customization in food selections and strategically positions Giant Food to respond to its diverse market demand with greater agility and flexibility, while delivering on its three-pronged brand promise: ease, assortment and experience.
This will also enable Stop & Shop to more fully focus on reimagining its brand and delivering an omnichannel experience that is truly Right for “Liz,” Stop & Shop’s target customer. This strategic work is a key U.S. critical priority.
Both of our brands are excited for this change and feel that this decision is in the best interest of both organizations and will enable more competitive, strategic and responsive promotional planning and ad development, increased regional relevance and independent commercial planning, among other benefits, resulting in increased value for both of our brands and our supplier partners. One aspect of services Stop & Shop will continue to manage and provide to Giant Food through an agreement between the two brands is fresh procurement.
As this transaction is happening in phases between Q3 2019 and the end of Q3 2020, there are no changes to vendor contacts now. We will let you know, as appropriate, of any changes as the transition takes place.
As always, we thank you for your partnership. If you have any questions, please don’t hesitate to reach out. We look forward to continuing to collaborate with you, our valued suppliers, to drive value for our businesses and for customers.