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CORPORATE SOCIAl RESPONSIBIlITY & ANNUAL HIGHLIGHTS 2013
Together, we improve people’s everyday lives and well-being.
TABlE OFCONTENTS
CORPORATE SOCIAl RESPONSIBIlITY STATEmENT
Building on our Founders’ legacy to improve the lives of others, we strive to conduct our business with the highest ethical and business standards each and every day. At Giant Eagle, Corporate Social Responsibility is about serving our loyal Team Members, Customers, Communities and Shareholders by meeting their many diverse needs and exceeding their expectations. We want our Team Members to feel a deep sense of pride when telling their friends and family about the inclusive and rewarding place they work. We want our Customers to know they are getting the very best service and products where they shop. We want the many Communities we serve to feel a deep sense of connection to us. We want our Shareholders to feel confident that through continued leadership, innovation and profitable growth, we will ensure our future success. And, as wise stewards of our environment, we want to continually look for ways to reduce and eliminate waste in our stores, retail support centers and offices and to operate in a sustainable manner.
1 Leadership Matters
2-3 History Matters
4-5 Culture & Kindness Matter
6-7 Safety Matters
8 Ethics & Integrity Matter
9 Inclusion & Diversity Matter
10 Recognition Matters
11 Service & Loyalty Matter
12-13 Health & Well-Being Matter
14-15 Community Matters: Health & Wellness
16-17 Community Matters: Hunger Relief
18-19 Community Matters: Education & Community Enrichment
20-21 Waste Reduction & Sustainability Matter
22 2013 Annual Highlights
Together, we improve people’s everyday lives and
well-being summarizes who we are, and all that we
do at Giant Eagle. This important statement, which
is written on the front cover of this publication, is
Our Common Purpose. It serves as a reminder of our
ongoing commitment and responsibility to our four
loyal constituencies: Team Members, Customers,
Communities and Shareholders.
Corporate Social Responsibility is fundamental to Giant
Eagle’s culture and Core Values. It is also reflected in the
daily commitments we make to all of our constituencies
to perform with the highest ethical and business
standards; provide customers with exceptional products
and services; attract and retain the best Team Members;
provide meaningful community support; and reduce
waste while operating in a safe and sustainable manner.
In our second Corporate Social Responsibility Report,
we focus on what matters most to us as a Company.
In the following pages, you will read about some of
the key areas we embrace: Safety, Ethics and Integrity,
Inclusion and Diversity, Community Service, Hunger,
Health and Well-Being, Education and Sustainability.
We know that truly great businesses are smart stewards
of their resources and leaders in creating positive
cultures and progressive change.
The 2013 Annual Highlights portion of this publication
illustrate some of our successes from the past fiscal
year. It was a challenging year, yet despite restructuring,
increased supply costs and unprecedented competition,
we celebrated a record $9.9 billion in sales. We reduced
our Team Member safety incidents by more than 5% in
all categories and exceeded our long-term Company
safety goal with our lowest and best rate ever!
We continued to open state-of-the-art stores as
well as our first Good Cents Grocery + More. We
launched our largest everyday price reduction in our
Company’s history! We also earned prestigious awards,
including The EPA’s GreenChill Advanced Refrigeration
Environmental Achievement Award - Best Partner
Emission Rate; TOP WORKPLACES; and Healthiest
Employer Awards.
I am very proud of what we accomplished as one team
of more than 36,000 talented Team Members who work
in our stores, retail support centers and offices. I hope
you will enjoy reading about these accomplishments,
as well as some of our important Company initiatives.
I sincerely appreciate and value your support.
At Giant Eagle, we accept that in nourishing and
supporting people, we are also improving lives
and communities.
lEADERSHIP mATTERSMESSAgE FROM lAuRA kARET, CHIEF ExECuTIvE OFFICER
1
HISTORY mATTERS
In the early 1900s, five entrepreneurs, Benjamin Chait, Joseph Goldstein, Hyman Moravitz,
Joseph Porter and Morris Weizenbaum were determined to find meaningful work and
build a better life for their families and their communities. Four of them immigrated to
Pittsburgh from eastern Europe. Goldstein was born in Pittsburgh.
The Chait, Goldstein and Porter families built a small grocery company called Eagle
Grocery. This successful business grew steadily to 125 stores. In 1928, those three families
sold Eagle Grocery to the Kroger Company. As part of their agreement with Kroger, the
families left the grocery business for three years.
In the meantime, the other two families—Moravitz and Weizenbaum—had been building
their own successful chain of grocery stores named OK Grocery. In 1931, all five families,
who still own the Company today, combined to form Giant Eagle. In 1933, Eagle Grocery
opened its first grocery store near Pittsburgh.
During the 1950s and 60s, Giant Eagle stores grew to 15,000-square-feet and
were designed to offer more products and variety. Giant Eagle introduced overall
price lowering, which included Profit Sharing Blue Stamps. To help customers with
inflation-related issues of the 1970s, Giant Eagle introduced generic products, as well
as its lower-priced, private label products. This decade also saw Giant Eagle open its
doors on Sundays (24-hours, seven days a week) and offer in-store bakeries, delis
and open-code freshness dating.
Hard work, big ideas and smart risks —that’s how this family Company began four generations ago, and how it still approaches business today.
2
In the 1980s, Giant Eagle celebrated its 50th birthday—with 52 stores. Giant Eagle also offered Absolute Minimum Pricing to drive food prices down in the Pittsburgh region from the country’s highest to one of its lowest. The Company continued to offer customers more in-store conveniences, including pharmacies, floral, housewares, books and greeting cards, photo processing and video rentals. Giant Eagle also became a full-fledged wholesaler and began supplying independent Giant Eagle stores.
During the 1990s, Giant Eagle became the supermarket leader in western Pennsylvania, northeastern Ohio and northern West Virginia. The Giant Eagle Advantage Card®, introduced in 1994, became the area’s first frequent shopper loyalty card. At the same time, the Eagle’s Nest, an in-store learning and activity center staffed with trained childcare providers, was opened.
Giant Eagle also established Nature’s Basket, an organic product line, and offered customers in-store dry cleaning and banking. As the 1990s drew to a close, Giant Eagle acquired Cleveland’s Riser Foods, adding corporate and independent stores to the Company.
After the turn of the century, Giant Eagle expanded its presence in Ohio with store openings in Columbus and Toledo. In addition to moving into western Maryland and launching its fuelperks! loyalty savings program, Giant Eagle also launched four new store concepts customized to meet specialized customer needs between 2003 and 2008. Those formats include: Market District, an innovative shopping destination, offering an array of gourmet and specialty foods; GetGo and Giant Eagle Express, fuel, convenience and small grocery stores focused on sub shops and prepared foods; and, Valu King. All Valu King
locations were converted into Good Cents Grocery + More, our discount supermarket format. Good Cents delivers fresh produce, cheese, meat and seafood at very low prices in a value-oriented setting.
What began as a dream 82 years ago is now one of the nation’s largest food retailers and distributors with approximately $10 billion in annual sales and more than 36,000 Team Members. Giant Eagle is ranked 29th on Forbes magazine’s largest private corporations list.
Today, Giant Eagle operates 229 supermarkets, including 51 independently owned locations, as well as 190 fuel and convenience stores in four states, and is a wholesaler to other retail grocery stores located within our market areas.
3
Together, we improve people’s everyday lives and well-being.
We are all leaders. At Giant Eagle, in our stores, retail support centers and offices, leadership is not about title or power.
Rather, it’s about how we: value and respect the dignity and well-being of every person; continually coach and develop each other; seek and embrace feedback; motivate each other to achieve more than we ever thought possible and, hold ourselves accountable.
CulTuREmATTERS
4
Be the most innovative, leading provider of high-quality food, drug, fuel and related services to everyone in our communities.
Respect for Team Members leads to Operational Excellence, which results in Positive Outcomes and Profitable Growth for our Team Members, Customers, Communities and Shareholders.
How we execute our Company strategy
Take Costs Out of the System
Drive Sales& Profitability
Invest in Our Customer Value
Proposition &Attract & Retain
Customers
This year, the Team Member Care Fund, a 501 (c) 3
non-profit corporation, turns three! This fund is for
Team Members and is sustained by Team Members.
Grants are given to those who face unforeseen crises
without the resources to help. It’s made a difference
in a number of Giant Eagle family members’ lives.
One Story: In 2009, a Team Member was diagnosed
with lung cancer. After aggressive treatment, the cancer
was gone. One year later, the cancer returned, and he
was determined to beat it. While he was in recovery, he
asked for financial assistance from the fund. Now, he is
cancer free and is grateful for the Team Member Care
Fund for the help and hope it provided during such a
difficult time.
To donate, you can sign up for payroll deduction at any
time, or you may mail your check to:
Team Member Care Fund, 701 Alpha Drive
kINDNESSmATTERS
CElEBRATINg 3 YEARS
5
• Check for safe food temperatures
• Confirm food is in sound condition
• Place frozen/refrigerated food in storage immediately
ENSURE
SAFERECEIVINGPRACTICES
11GE15155COPO-Q
01FEB2012
KEEP HOTFOODSHOT
• Check food temperature regularly • Assure temperature is 140 degrees or above• Keep case clean
11GG15155COPO-AK 31AUG2011
UTILIZEFIRSTAID KITS
• Be aware of first aid kit locations • Report all emergencies immediately — First responders are available on all shifts
11GE15155COPO-BW01AUG2012
The safety of our Team Members, Customers and Business Partners is our Company’s top priority. At Giant Eagle, we also believe that safety is everyone’s responsibility.
Our Team Members are working smarter and safer every day by taking ownership of these three important safety steps: respecting the risk; seeing it and owning it; and stepping up and speaking out to address the safety issue. We continue to strive for a zero-incident safety environment with our Team Members, Customers, Pharmacy, Food and Fleet.
SAFETYmATTERS
6
TEAm mEmBER SAfETy
In Fiscal Year 2013, we celebrated a major
accomplishment when we achieved our long-term
Company Lost Time goal. The entire Company deserves
a great deal of credit for implementing our Team
Member safety efforts. To recognize this significant
accomplishment, Giant Eagle’s first-ever Founders
Excellence Award, was awarded to the entire Company,
our more than 36,000 Team Members. The Founders
Excellence Award represents the best of the best in
annual Company achievement.
We’ve also taken additional steps to create a safer
work environment for our Team Members and reinforce
our safety messages with training and internal
communications. We continue to hold safety and food
safety coaching sessions with our Team Members in our
stores and retail support centers, which we believe have
helped to reduce the number of incidents, and in many
cases, have prevented them from occurring. We have held
nearly 1 million safety coaching sessions since we began
the safety prevention and education program in 2012.
CUSTOmER SAfETy
To help keep our customers safe, we use in-store
signage, and proactive communications, such as our
child shopping cart safety message and brochure that
outline simple precautions to keep children safe in and
around shopping carts. Additionally, we offer Team
Member escorts to our customers’ cars upon request.
We also advise our customers not to lift heavy items
when they are at the checkout register, reminding them
that our Team Members have a detachable device to
safely scan items.
PHARmACy SAfETy
Our pharmacists and technicians participate in extensive
and ongoing pharmacy safety training. Additionally,
RapidFill, our computer software program, provides
pharmacists with an electronic system that helps to
increase accuracy and control, prevent errors and
organize customer information.
fOOd ANd PROdUCT SAfETy
We also want to provide our customers with the
freshest food and best products. This commitment
encompasses all areas of our business from our stores
and retail support centers to our transportation and
vendors. We’re proud of the rigorous safety standards
we’ve set in place for every area of our supply chain,
and our customers should feel confident that their
health is always top of mind at Giant Eagle. For example,
our stores and retail support centers follow strict
processes for cleaning and sanitizing, as well as time
and temperature control. Our stores and retail support
centers are audited on a regular basis to ensure safety
standards are met on all fronts.
PROdUCT RECALLS
Although we make every effort to provide the highest
quality food and other merchandise, sometimes
manufacturers make mistakes and their products must
be recalled for health, safety or other reasons. When
this happens, Giant Eagle quickly alerts customers to
potential risks, immediately removes and blocks the
product, offers an alternative product when possible,
and does everything possible to improve the situation
for our customers.
7
The Code also includes an Ethics Action Hotline,
which allows Team Members to raise questions
anonymously and report concerns about possible
unethical behavior and/or situations. We also
reassure our Team Members that they should never
fear retribution when reporting issues or concerns
because retaliation is never tolerated. In fact, raising
questions and concerns is not only encouraged,
it’s expected.
This ongoing and day-to-day commitment
to ethics and integrity from each one of our
Team Members translates into a better working
environment, a better customer experience and
ultimately, a better community.
By making ethics and integrity top priorities throughout
Giant Eagle, we can all be proud of the work we do. We
work to deliver Our Common Purpose. Our Company’s
emphasis on Respect for People means just that—we treat
each other with fairness, kindness and respect. We do this
by remaining committed to our five Core Values: Be Kind,
Think Team, Step Up, Work Smart and Live Well, which
speak to our Company’s family culture and rich history.
To keep us on the right path, Giant Eagle maintains a
formal ethics program, led by an Ethics and Compliance
Committee. Our Code of Ethics and Legal Compliance,
which was refreshed this past year, is shared with all Team
Members. The Code explains our expectations, policies
and procedures regarding ethical and respectful behavior.
ETHICS & INTEgRITYmATTER
Giant Eagle’s principles are based on ethics and integrity. Today, the way we conduct business and treat one another—our Team Members, Customers, Communities and Business Partners—is essential to maintaining a culture based on integrity, trust and respect.
8
Building an inclusive and diverse workplace is very important to Giant Eagle. Simply put, we are determined to ensure that all Team Members and Customers are welcomed and valued.
At Giant Eagle, we define our inclusive culture as: respecting all the ways our Team Members, customers and community members think, see and behave due to their unique backgrounds, race, gender, ethnicity, religious affiliations, abilities, gender identity or expression, sexual orientation, age and other experiences.
We believe our varied beliefs, talents and skills also provide unique business advantages because by thinking about and approaching issues differently, we are often better positioned to solve complex challenges and serve the many needs of our customers and communities.
INCLUSION ANd dIvERSITy AwARdS & ACCOLAdES
ACHIEVA Excellence in Employment Award 2013 Most Powerful and Influential Woman and Multicultural Leadership Awards from Pennsylvania National Diversity Council were awarded to two Giant Eagle women.
Nine female Team Members were also selected by Progressive Grocer as winners of the 2013 Top Women in Grocery Awards, which recognize the integral role women play across all areas of the retail food industry.
2013 ABOARD Honoree for Giant Eagle’s practice of hiring and retaining Team Members with autism and special needs
Vanguard Diversity Award from the Community College of Allegheny County in recognition of Giant Eagle’s commitment to diversity and inclusion; hiring and support of Team Members with physical, mental and emotional disabilities; partnership with minority-owned businesses and, outreach to disadvantaged students and communities.
Giant Eagle shows support for inclusion and diversity by sponsoring networking groups such as the Young Professionals Organization (YPO) and the Women’s Business Resource Group (WBRG). Two additional networking groups have gained momentum this year: the Multicultural Resource Group, which celebrates the distinct cultures and backgrounds of Giant Eagle Team Members; and Giant Eagle PROUD which is in support of the LGBT (Lesbian, Gay, Bisexual and Transgender) community at Giant Eagle. All four of these networking groups work with the Team Member-led Inclusion and Diversity Committee to continually look for additional opportunities to become a more inclusive place to work and shop.
Recently, Giant Eagle has been able to work closely with the United Way of Allegheny County and the Blind and Vision Rehabilitation Services of Pittsburgh to help its staff launch a new program called 21 and Able, which provides jobs for high school students with disabilities. Through 21 and Able, these students will be offered on-the-job support to help with the transition from school into the workforce.
Giant Eagle is also proud to partner with other groups that support inclusion and diversity in our communities including: Fund for Advancement of Minorities through Education (FAME); Roberto Clemente Minority Business Association; St. Martin de Porres High School in Cleveland; Jewish Family and Children’s Service of Pittsburgh, among others. Working together with these organizations, Giant Eagle is able to better recruit more diverse talent, which is a key strategic priority during FY 2014.
INCluSION & DIvERSITY mATTER
9
RECOgNITION mATTERS
OuR TEAM mEmBERS
Giant Eagle was selected as one of the 2013 Healthiest Employers
in both western Pennsylvania and central Ohio in recognition of our
commitment to our Team Members’ health and wellness, as well as
the quality, effectiveness and overall participation of our corporate
health and wellness programs.
We’ve earned TOP WORKPLACES awards in Cleveland and
Pittsburgh, as well as similar accolades in Columbus, as a result of
our Team Members’ positive feedback about their work environment.
We’ve also received the Goodwill Industries Power of Work Awards.
And, we are especially proud of a special honor and citation
(pictured right) that we recently received from the Governor and Lt.
Governor of Ohio acknowledging our ongoing commitment to hiring,
supporting and developing our Team Members with disabilities.
SuSTAINABIlITY AwARdS
Giant Eagle received the EPA’s GreenChill Advanced Refrigeration Environmental Achievement Award for having the Best Partner Emission Rate.
Giant Eagle was also named to the EPA Green Power Partnership Top 20 Retail List as one of the largest retail purchasers of Green Power.
Giant Eagle is purchasing 20 million kWh annually. Here’s what that means: The 20 million KWh annually will offset the emissions from 2,940 vehicles each year or could also offset the emissions from the electricity usage of more than 2,000 average-size American homes per year!
Our Common Purpose motivates us to continually care for others and do great things. As a result, we are very fortunate to have been recognized for the positive impact our Team Members have had on one another, our Customers, Communities and the environment.
10
As part of our Respect for People priority, we acknowledge the incredible value of our Team Members’ service and loyalty to Giant Eagle.
In August, Giant Eagle recognized more than 30 retail locations and almost 70 individuals for their outstanding work in a multitude of categories at our Annual Awards Ceremony (pictured right). Some award categories included: Retail Operational Excellence; Excellence in Sustainability; Frieda G. Shapira Community Service and the Chairman’s Entrepreneurial Leadership & Innovation Awards, among others.
The event’s most prestigious award, the Founders Excellence Award, in honor of Giant Eagle’s five Founders, was awarded to the entire Company for long-term achievements in Team Member Safety. Our more than 36,000 Team Members celebrated this success with complimentary lunch the following week to recognize this exceptional achievement.
During the Annual Awards Ceremony, 100 Team Members were also inducted into our 40-Year Wall of Fame—a permanent Giant Eagle family tree for Team Members with 40 years of service or more. This tree is displayed in the lobby of our corporate headquarters and includes names and photos of many of our Team Members with 40 or more years of service.
Team Members with 20 years of service or more are also publicly recognized at our annual years of service luncheons. Gifts are also given to our Team Members with five or more years of service.
SERvICE & lOYAlTY mATTER
Team Members are the heart and soul of our Company, and their loyal service and dedication is inspiring. In fact, thousands of Team Members have decades of service to Giant Eagle!
LOyALTy mATTERS
• Four Team Members have 50 or more years of service
• Nearly 350 Team Members have 40 or more years of service
• More than 1,600 Team Members have 30 or more years of service
• Almost 5,200 Team Members have already celebrated 20 years of service
• 11,000+ Team Members have been with Giant Eagle for more than 10 years11
As part of our commitment to Team Member Health
and Wellness, we developed Live Well, a comprehensive
approach to Team Member well-being.
Live Well offers programs designed specifically to
address the issues that concern our Team Members
the most, such as preventive health care, exercise and
fitness, nutrition, smoking cessation, flexible work
arrangements, talent development, financial resources
and improved two-way communications.
LIfE RESOURCES
Giant Eagle introduced a new Team Member Assistance
Program in January 2013. This program, called Life
Resources, provides confidential support, resources
and information for personal and life-work solutions,
including legal, financial and counseling services,
among others. These services are free for Team
Members and their families 24 hours a day,
7 days a week.
LIvE HEALTHy
For the third year in a row, Giant Eagle competed in
Live Healthy, a national ten-week weight loss and fitness
challenge. 5,512 Team Members on more than 950 teams
participated in the competition.
The impressive overall results include:
• 27,381 pounds lost
• 356,748 hours of activity
• 765 Team Members lost 10+ pounds
HEAlTH & WEll-BEINg mATTER
We want everyone to live a healthy, balanced life. Our goal is to inspire and enable our Team Members to be the best they can be physically, emotionally, professionally, financially, socially and in their communities.
12
Giant Eagle supports community involvement by hosting exclusive Team Member events at the Multi-Sport Festival in Columbus and at the Pittsburgh Heart Walk, among others. At the 2013 Multi-Sport Festival, Live Well hosted a free Giant Eagle Family Picnic, sponsored a Team Member and Family Two-Mile Fun Run as well as an Olympics competition just for kids.
2013 TEAm mEmBER HEALTH & wELL-BEING HIGHLIGHTS
• We offered free biometric health screenings for all
Team Members with a robust incentive program
for participants.
• More than 125 Team Members have completed
a Tobacco Cessation Course. The average quit rate
is more than 50%, almost double the 2012 quit rate.
• Hundreds of Team Members participated in personal
nutrition coaching sessions and weight management
classes in 2013. 75% of Team Members who have
participated in these sessions have met or exceeded
their own personal health and wellness goals.
• We built and opened a second corporate gym in
Cleveland that has more than 200 active members.
The Pittsburgh corporate gym continues to offer
a wide variety of fitness classes as well as personal
training sessions for Team Members.
• We continue to offer our Gym Perks program, which
includes deep discounts (15% to 60% off) on 18 gyms
and fitness facilities across our operating areas with
more than 100 locations in total.
13
COMMuNITYmATTERS
Giant Eagle is committed to supporting the communities in which we live and work. By doing so, we assist in the building of a stronger, healthier and happier community for everyone. We support numerous organizations that focus on Health and Wellness, Hunger Relief, Education and Community Enrichment.
HEAlTH & wELLNESS
14
Helping communities stay fit is a very important goal. Giant Eagle sponsors more than 100 community health and
wellness events that encourage people to live healthy. Partners include the American Heart Association, American
Cancer Society, American Diabetes Association and Komen for the Cure. Every year, thousands of Team Members
participate in these events and raise funds and awareness for such worthwhile causes.
Additionally, Giant Eagle supports Susan G. Komen for the Cure and celebrates cancer survivors through product
donations and special survivor events. Giant Eagle has participated in Race for the Cure in Pittsburgh for more than
20 years and also supports the Race in Cleveland, Akron and Columbus.
For the past 20 years, Giant Eagle’s Be A Smart Shopper! program has provided schools the opportunity to help
children learn about healthy living and nutrition through hands-on, in-store field trips. Last year, the free program
helped 30,000 children from Kindergarten through Grade 6 learn how to make smart and healthy choices.
To learn more, or schedule a tour, visit www.GiantEagle.com.
Since 1997, through the Cookie Card Card program, Giant Eagle has donated more than $2 million to local
children’s hospitals.
15
COMMuNITYmATTERS
Each year, Giant Eagle retail locations provide more than 5 million meals to regional food banks, which is equal to $9 million to combat hunger in our communities. Giant Eagle also donates thousands of products to community organizations across its footprint.
HuNgERRELIEf
16
Giant Eagle sponsors two large annual food drives, including Fall FoodShare in
western Pennsylvania and Harvest for Hunger in eastern Ohio. This past year,
together with Team Members and customers, Giant Eagle raised more than $1.1
million to support regional food banks!
2013 COmmUNITy dONATIONS
Across the Giant Eagle geographic footprint, our stores, retail support centers and
offices donate hundreds of thousands of products and items to support community
events, charitable fundraisers and neighborhood groups.
Our CEO, Laura Karet, recently visited
three food bank partners in Cleveland,
Columbus and Pittsburgh to encourage
our communities to donate to these
worthwhile organizations.
To learn more about Giant Eagle’s
commitment to combatting hunger
in our communities, please visit this link to watch this important video. (https://www.youtube.com/watch?v=8iq5QrbJBl)
17
COMMuNITYmATTERS
Giant Eagle proudly supports a number of programs that directly improve education in communities and help students become better learners.
EDuCATION & COMMuNITY ENRICHmENT
18
SUPPORTING ENTERTAINmENT, CULTURE ANd SPORTS
Giant Eagle Advantage Card customers enjoy special
discounts on admission prices at hundreds of events,
including museums, zoos, amusement parks, festivals
and family destinations. To see a full list, visit
www.GiantEagle.com.
Giant Eagle is also proud to support many area
hometown sports teams. We are the official supermarket
of the Cleveland Browns and the Pittsburgh Steelers
and Pirates. We also support the Pittsburgh Penguins,
Cleveland Cavaliers, The Ohio State University, West
Virginia University, University of Akron, Kent State
University and Indiana University of Pennsylvania.
Minor league baseball teams are supported in Altoona
and Erie, Pennsylvania, and in Fredrick, Maryland.
In 1987, Giant Eagle created Apples for Students which allows customers to benefit a school every time they shop by
simply registering at www.GiantEagle.com. With each purchase made using a Giant Eagle Advantage Card, designated
schools receive credits toward computers, software, audio-visual aids, fitness equipment and more.
This year, Giant Eagle celebrated the Apples for Students 25th Anniversary and marked more than $30 million dollars
given to area schools since inception of the program.
Since the 1990s, many children have enjoyed learning and playing in the Eagle’s Nest, our convenient
in-store supervised learning activity centers. While parents shop, trained childcare instructors work with children
ages three to nine. Nearly one million children visit the 110 Eagle’s Nest locations annually!
COmmUNITy ENRICHmENT ANd SUPPORT
Giant Eagle provides millions of dollars each year to bring people together to strengthen our communities. To support
the most critical needs in our communities, last year, Giant Eagle Team Members, customers and corporate contributions
provided more than $2 million in funding to local United Way agencies.
19
Giant Eagle aggressively works to reduce and remove waste for the benefit of our planet, the many people we serve today and will serve tomorrow, and for positive outcomes for all of our constituencies.
We strive to understand the environmental implications of all we do. This responsibility is reflected in our individual
behaviors and in how we conduct business. As Team Members, we consider careful use of resources in our daily
routines, and as a Company, we pursue smart, sustainability strategies and goals in our business planning, including:
• Reducing and removing the use of non-renewable resources and waste;
• Recycling the waste we create and
• Seeking out energy-saving alternatives.
We know our collective efforts to eliminate waste will lead to profitable outcomes for our business, which will
directly enhance the lives of our Team Members, Customers, Shareholders and the Communities we serve.
Together, we will make a positive impact on our environment today and for generations to come.
2013 SUSTAINABILITy ACCOmPLISHmENTS
Sustainable Innovation: In February, two new GetGo locations, one on McKnight Road, north of Pittsburgh,
and one at Pittsburgh’s South Side Works, received solar installations on their roof and fuel canopies. The rooftop
areas combined produce 22,000-square-feet in solar arrays with an estimated solar energy output of nearly
65,000 kilowatt hours (kWh) per year.
WASTE REDuCTION & SuSTAINABIlITY mATTER
20
Alternative Energy-Saving Natural Resource Opportunities: Giant Eagle continues to offer
electric vehicle charging stations in Pennsylvania at the Settler’s Ridge Market District in
Robinson Township and the Monroeville Giant Eagle.
Alternative Fuel: Giant Eagle continues to transition its delivery fleet vehicles to Compressed
Natural Gas (CNG) (pictured right). CNG is a fuel substitute that offers improved air quality
for the region through emissions reductions and allows vehicles to run 50% quieter than
diesel trucks. Currently, 32 trucks in Giant Eagle’s Pittsburgh-based fleet have transitioned
to operate on CNG, and conversion of the Cleveland-based fleet is also currently underway.
In September, we also opened a public CNG pump at our GetGo in Cranberry Township,
Pennsylvania.
Waste Diversion: During the year, we increased the number of stores that compost from
seven to 12 locations as well as one retail support center. Collectively, these stores diverted
2.7 million pounds from landfills in a cost-neutral environment. An additional 3 million pounds
of waste have also been diverted from our food preparation and meat departments.
Giant Eagle has also recycled 97 million pounds of cardboard, paper and film plastics.
LEED® Certification: Giant Eagle is committed to building new stores that are designed
with energy and resource efficiency in mind. As the world’s first grocer to operate a LEED-
certified supermarket, which is defined as Leadership in Energy and Environmental Design,
we’ve set the bar high for our industry. To date, seven of our supermarkets and two of our
GetGo convenience stores have earned LEED certification from the U.S. Green Building
Council, as will three supermarkets and one new GetGo location that recently opened.
Recycling & Re-using: We continue our electronics waste (eWaste) recycling program to
all corporate supermarkets, retail support centers and numerous independent store locations
to provide convenient opportunities for Team Members and customers to recycle electronic
devices, such as cell phones, iPods, MP3 players, ink cartridges and digital cameras.
Proceeds from the recycled devices are donated to local food banks.
Sustainable Seafood: Giant Eagle is also dedicated to providing a wide variety of the
freshest and highest-quality, sustainable seafood while being good stewards of the marine
environment. We are currently engaged with Sustainable Fishery Partnerships to sign
Conservation Covenants with one of our Gulf of Mexico suppliers to reflect the additional,
voluntary steps that fishermen take to ensure ongoing conservation improvement.
Additionally, Giant Eagle has select suppliers that are committed to improvement
projects in fisheries around the world.
AwARdS & ACCOLAdES
The Best Green Design Award from Progressive Grocer in the 2013 Store Design Contest for our Giant Eagle supermarket location in Broadview Heights, Ohio. The award recognizes the location as the first supermarket with a solar roof in northeast Ohio.
The Best Green Design Award by Convenience Store News in the 2013 Store Design Contest for the design of the Pittsburgh (South Side Works) GetGo.
The Health and Beauty Care distribution center received recognition from the United States Environmental Protection Agency for its achievement in the ENERGY STAR’S 2012 National Building Competition for the facility’s extensive lighting upgrade, which replaced existing inefficient lighting with energy efficient LED technology that reduced energy usage by more than 20%.
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23 Customers Matter: Health and Wellness
24-25 Giant Eagle, Market District & Market District Express
26-27 GetGo & Giant Eagle Express
28-29 Good Cents
30 Retail Support Centers
TABlE OFCONTENTS2013 ANNuAl
HIGHLIGHTSANd OPERATIONAL ExCELLENCE
CuSTOMERS MATTER: HEAlTH AND WEllNESS
OPERATIONAl ExCELLENCE
From a product perspective, Giant Eagle offers many
organic and nutritional foods. Additionally, many of our
stores offer an expanded Health, Beauty and Wellness
Department that features natural cosmetics, specialty
skin care, vitamins, nutritional supplements and personal
care products. Those stores are also staffed with a
dietitian and licensed esthetician.
Our pharmacies also provide customers with numerous
wellness offerings, including vaccine programs and
health screenings. In addition, Giant Eagle helps
customers alleviate some of their healthcare
expenses with a number of free and low-cost
prescription programs.
In 2012, we expanded our prescription programs to
include a 90-day supply of prenatal vitamins free-of-
charge for expectant mothers and we continue to offer
hundreds of discounted $4 and $10 medications. With
a physician prescription and a Giant Eagle Advantage
Card, these free and discounted programs cover both
new prescriptions and refills.
We now offer free next-day home delivery service on
prescriptions and health-related items such as over-the-
counter medications available in our Columbus stores
and at select locations in all of our regions. This program
allows customers who are unable to leave their home to
receive their prescriptions at their front door. All home
delivery prescriptions are delivered by a Pharmacy
Team Member and require the signature of the customer
whose prescription is sent in, to ensure that medication
information remains confidential.
We are also proud to offer tens of thousands
of specialty products to meet the various medical,
dietary and lifestyle needs and choices of our
customers, including more than 7,000 gluten-free
items. To make the shopping experience easier for our
customers, our grocery aisles have been expanded to
include designated gluten-free sections to highlight
those items that are carried in our stores.
Just as we are committed to our Team Members’ health and well-being, we are also focused on helping our customers understand what they can do to be fit and healthy.
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gIANT EAglE, MARkET DISTRICT & MARkET DISTRICT ExPRESS
OPERATIONAl ExCELLENCE
A part of Giant Eagle’s continuous growth and transformation over the past 82 years has
been a result of acquiring and building new Giant Eagle supermarkets, expanding our
geographic footprint and developing new banners, including GetGo, Market District,
Giant Eagle Express, Good Cents Grocery + More and Market District Express. We continue
to delight our customers with our multi-format approach to retail, which remains one of
our Company’s greatest strengths and competitive advantages.
As an industry leader, we’ve continually explored innovative ways to profitably grow our
business and have remain committed to meeting our more than 4 million customers at
their diverse points of need. We are focused on driving sales and profitability through
Customer Relationship Management and our many points of difference, which include
Fresh and Prepared Foods; Beer, Wine and Liquor; Core/Specialty Pharmacy; Health and
Wellness; Gift Cards; Own Brands; fuelperks! and, Customer Service.
Market District continues to serve as our retail center of innovation and a place for
Giant Eagle to experiment and test new ideas. In the Fall of 2012, we launched our
first Curbside Express at the Settlers Ridge Market District location and have expanded
the concept to three additional locations within the past year. Curbside Express allows
customers to order groceries from the convenience of their home or office and select the
day and time of pickup. Customers drive through specially-marked lanes to pay without
even leaving the driver’s seat. And, all coupons and promotions apply just as they do inside
our stores.
As part of our strategic focus on operational excellence and our passion for food,
we continue to build state-of-the-art and sustainable locations, while reinvesting in
our existing supermarkets with major capital improvements.
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In 2013, we have focused on the expansion of our Market District format across three
major market areas: Columbus, Cleveland and Pittsburgh. In July, we expanded the
Market District footprint in Columbus by converting a Giant Eagle location in Dublin,
giving us a second location in this growing market (pictured lower right). Festivities were
kicked off with a traditional grand opening/ribbon cutting and a visit from the Cake Boss
Buddy Valastro, who gave away free cakes to the first 1,000 customers! Then in August,
we opened our first Market District in the Cleveland Operating Division in the town of
Solon with a brand-new building. We hosted our celebrity chef and friend Michael Symon,
who has strong restaurant roots in Cleveland to host a demo and book signing experience
for our customers. We recently expanded the Cleveland footprint by converting another
Giant Eagle store in Uniontown, Ohio, also known as Green.
We opened our first Market District Express location in the South Hills
of Pittsburgh in December 2013.
Inspired by our true passion for food and by neighborhood, European markets,
Market District Express offers a dining and food shopping experience unlike any other.
Our customers will experience unparalleled customer service from our Team Members
who love food! Market District Express customers will see, smell and taste the best of the
Market District experience in a smaller and more intimate store setting. Customers will
find a new world of food including unique produce, cheese and grocery selections from
local farms and around the world.
Additionally, our Market District Express restaurant will offer customers a menu full
of innovative meals prepared to order in a very warm and welcoming environment.
Customers can also enjoy seasonal menus, wine by the glass and a wide selection of craft
beers to take home or enjoy in the restaurant, which will offer indoor and outdoor seating.
The Market District Express will offer the following additional features:
Great customer service means building lifelong relationships with our customers with every interaction. Whether through a friendly greeting, brief conversation, a genuine thank you or exceeding our customers’ expectations and going the extra mile, our Team Members influence the way our customers feel about their day and their experience with our Company. Customer service is at the heart of Our Common Purpose.
We will continue to increase our focus on customer service at Retail and throughout the organization. This is being driven by key initiatives, including Voice of Customer survey, which provides real time feedback into the customer experience; the Customer Service Champion network, which ensures every location has a driver of service; and by involving the entire organization in defining and celebrating customer service success. We are also measuring our success through customers’ Overall Satisfaction (OSAT), which allows us to understand and plan for how our Company initiatives may impact the customer experience. We’re excited to position Giant Eagle as the destination for an unmatched shopping experience.
OPERATIONAl ExCELLENCE
• Sushi
• Meat, Seafood, Deli, and Frozen Foods
(smaller assortments)
• Specialty Cheese, Olives and Charcuterie
• Gourmet Pastries and Desserts
• Gourmet Foods
• Fresh Prepared Meals available in the
Market District Express Restaurant
• Frozen Yogurt Bar
• Pharmacy
• Starbucks
CuSTOMER SERvICE mATTERS
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At GetGo and Giant Eagle Express, convenience is key. Equally important, is providing our customers with high quality products, fuel and service. We also offer many fresh and easy to prepare meal solutions, including Sub Shops in many of our locations that feature homemade breads baked fresh in-store daily and premium lunch meats.
In Fiscal Year 2013, we opened 12 new GetGo locations across our footprint including the South Side Works (Pittsburgh) location pictured on the opposite page. This is our first GetGo location to feature a solar roof, as well as solar panels on the fuel canopies.
Our GetGo Famous for Food and Beverage Program that was rolled-out in 2010 at our new or expanded GetGo sites continues to be quite successful and popular with our customers. We’ve continually enhanced this program with new or improved offerings including bigger, better breakfast sandwiches and made-to-order breakfast bowls and cinnamon rolls. We’ve also launched made-to-order smoothie drinks, as well as a specialty coffee program at our Shaler, Pennsylvania, GetGo location. We are rolling out these new concepts to all of our GetGo Sub Shops this year.
getgo & gIANT EAglE ExPRESS
OPERATIONAl ExCELLENCE
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OPERATIONAl ExCELLENCE
Last year, we also launched
the $.03 Giant Eagle Advantage
Card fuel discount, as well as
a new pricing structure and
additional offerings at our
WetGo car wash locations.
GetGo and Giant Eagle Express stores also offer extensive beverage options, including Pepsi and Coca-Cola products,
iced coffees and frozen beverages and more than 30 brands of coffee, tea and cappuccino choices.
Time-saving conveniences at many of our GetGo and Giant Eagle Express locations include Citizens or Huntington Bank
surcharge-free ATM machines, free air pump machines, gift cards from more than 150 retailers, free unlimited Wi-Fi in
the café areas and touch screen kiosks that allow customers to custom-order numerous items, including subs, pizzas,
salads, wraps and soups.
Our Indiana, Pennsylvania, Giant Eagle Express location (pictured left) continues to do well. This 14,000 square-foot,
24-hour grocery store offers fresh prepared foods, a salad bar, sushi rolled fresh daily, a full-service deli, sub shop,
fresh floral bouquets and a broad selection of grocery items.
We have made great strides with student engagement at Indiana University of Pennsylvania. Our restaurant amenities
that are unique to the Indiana Giant Eagle Express include made-to-order pizzas, 150 varieties of domestic and
imported beers and an outdoor seating area.
We continue to refine the Giant Eagle Express model to find the correct balance between customer need and profitability.
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gOOD CENTS
OPERATIONAl ExCELLENCE
Last year, we opened our first Good Cents location on McKnight Road in the North Hills
of Pittsburgh (pictured on these two pages) and we recently opened a second new
location in Parma, Ohio, near Cleveland.
Good Cents is very different from other discount banners because we offer a very large
produce section with nearly 200 conventional and organic produce items, as well as
a cheese department with more than 60 varieties. Our Good Cents stores also offer
customers fresh meat (cut in-store daily), a full-service deli and a wide variety of
regional and national brands, including more than 7,000 grocery items. Our Parma
store offers beer and wine at state minimum prices.
Additionally, we have converted our six Valu King locations to Good Cents stores in
Eastlake, Ravenna and Brooklyn, Ohio, and in Erie and Johnstown, Pennsylvania.
Our marketing efforts include newly produced TV and radio spots to support our new
store grand openings and conversions. We are excited about the continued evolution
of the Good Cents brand, including the fine-tuning of the marketing and messaging,
as well as store décor and exterior signage.
Good Cents Grocery + More, our Company’s discount format, is committed to providing fresh, quality foods at centsational low everyday prices in a simple, safe and clean shopping environment.
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OPERATIONAl ExCELLENCE
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Good Cents Mission
When it comes to operational excellence, our six retail support centers, which are located in Ohio and Pennsylvania, serve as essential components of our business.
Our retail support centers include American Seaway Foods in Cleveland, Ohio; Tamarkin in Youngstown, Ohio; Butler Refrigerated Meats in Harmony, Pennsylvania; Fresh Food Manufacturing in Freedom, Pennsylvania; OK Grocery in Crafton, Pennsylvania; and Health and Beauty Care in Washington, Pennsylvania.
These six facilities perform a variety of important functions, including production, distribution, transportation and daily delivery of the following product types: frozen grocery and meat; fresh meat, poultry and seafood; fresh grocery, dairy and produce; and health, beauty, pharmacy and general merchandise.
In our continued efforts to improve sustainability, Giant Eagle has completed LED lighting upgrades at four of our retail support centers: OK Grocery, Health and Beauty Care, Tamarkin and American Seaway Foods. The new LED lighting fixtures installed in distribution center aisles and dock areas have smart sensing and intelligent controls that allow instant on and instant off capabilities based on the occupancy in each area, reducing energy by operating only when necessary. Compared to the previous fluorescent lighting, these upgraded fixtures will last at least 11 years longer in all areas and more than 50 years longer in certain areas where the fixtures are being turned off completely.
This significant achievement in retail support center LED lighting upgrades was recognized with an Excellence in Sustainability Award at the 2013 Giant Eagle Annual Awards Ceremony. Another retail support center initiative was also recognized at the awards ceremony with a Retail Support Center Operational Excellence Award for daily deliveries of ice cream and frozen bakery items to our retail locations using Talon Integrated Logistics, a transportation company based at our OK Grocery facility.
OPERATIONAl ExCELLENCERETAIl SuPPORT CENTERS
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OuR gIANT EAglE FAMIlY mATTERS
That’s another Advantage.