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Connected: Grocery shopping goes high-tech
Saturday, October 28, 2006

Rarely do we think of old-line retailers as being high tech -- especially not traditional grocery stores. But that could be a misperception.

The other night I found out just how high-tech a grocer can be, when I visited Giant Eagle headquarters with Blue Knot, an organization of technology-related professionals, most of whom are part of the Jewish community. Giant Eagle, the region's dominant supermarket chain, has a technology infrastructure and vision that rivals the most progressive technology companies in Silicon Valley.

 
 
 

David Radin is a freelance writer for the Post-Gazette and business consultant. You can contact him at www.megabyteminute.com.

 
 
 

With a tech staff of 85 and a $50 million technology budget, Giant Eagle's technology department is bigger than most companies in the tech industry -- perhaps one of the factors that reportedly has kept Giant Eagle growing 10 percent to 12 percent annually for more than two decades.

Led by Chief Information Officer Russ Ross, this team is aggressive in finding and implementing technology to make the shopping experience better, streamline processes and reduce costs. In fact, when listing his guiding principles, being aggressive with technology is right on top. This has led the company to test and roll out a number of technology-based initiatives -- such as its Advantage frequent shopper program, its fuelperks! gas program, and other programs. It even has made investments in three technology companies -- with the common factor being that each of the companies creates technologies that Giant Eagle can use internally, as well as sell to other companies.

Most of Giant Eagle's technology is hidden in its infrastructure that has hundreds of servers -- both Windows and Linux -- and thousands of PCs. It runs on high speed networks to continuously connect its stores, gas stations and corporate offices. And, of course, it operates a Web site where shoppers can, among other things, check their gas discounts.

Most consumers in the Western Pennsylvania and Ohio shopping area are familiar with Giant Eagle's fuelperks! program, in which shoppers earn points that could be cashed in as gas discounts. Yet they don't think about the technology behind fuelperks! that makes it the high-octane marketing program it is.

In five Giant Eagle stores, shoppers can carry hand-held devices that let the shopper grab the prices of the items he puts in his cart, totaling the purchase as he goes. By the time he gets to the check-out lane, he has already done the majority of the check-out work, leaving only the payment standing in his way of getting out the door.

And there are other initiatives in the company's warehouses and behind the scenes that affect every aspect of the business, allowing it to better compete against the price-based juggernauts (such as Wal-Mart) that are infiltrating the food retailing industry as well as go high end with upscale shopping experiences.

If it seems simple to you, it's because the technology gurus at the company have done their job well. In technology, it usually takes a lot of hard technical work behind the scenes to make something look easy. They do the heavy lifting -- so you don't have to.

First published on October 28, 2006 at 12:00 am