DXC Technology Drives Northeast Grocery's Digital Transformation, Achieving Major Cost Savings

DXC Technology is stepping up to play a pivotal role in the digital evolution of Northeast Grocery, the parent company of popular grocery chains including Market 32, Price Chopper, and Tops Friendly Markets. Recently, the partnership has resulted in impressive savings of $40 million over five years, highlighting the effectiveness of DXC's strategic initiatives in modernizing the company's IT infrastructure.

In a recent announcement made from Ashburn, Virginia, DXC Technology (NYSE: DXC) emphasized its continuous support since 2008, assisting with numerous milestones that Northeast Grocery has achieved. This includes the significant merger in 2021 between Market 32 and Price Chopper and Tops, which are major players in the northeastern grocery market, running close to 300 stores across multiple states.

Northeast Grocery sought to streamline its operational efficiencies by consolidating its IT infrastructure, turning to DXC for guidance during this transformative phase. The support received from DXC not only helped ease the complexities of merging systems but also expedited the grocery chain's roadmap for innovation, which includes the impressive incorporation of generative AI technologies.

Scott Kessler, Executive Vice President and Chief Information Officer of Northeast Grocery, remarked, "During our merger, we needed to enhance productivity and create synergies by unifying our mainframe infrastructure. DXC has enabled us to continue delivering the excellent service our customers expect while preparing us for future advancements, particularly with the adoption of AI and other next-generation technologies."

To further enhance its efficiency, DXC has implemented comprehensive operations support to maximize Northeast Grocery's IT investments. This includes a recent modernization of their mainframe system, upgrading to a zLinux environment, which significantly boosts computing capacity. Such modernization efforts allow Northeast Grocery to remain focused on growth, innovation, and enhancing customer experiences, setting the stage for future expansion.

Additionally, DXC is responsible for managing a suite of IT services for Northeast Grocery, which involves software engineering, IT operations management, and workplace collaboration services. Chris Drumgoole, President of Global Infrastructure Services at DXC, stated, "We are committed to helping clients optimize the value of their technology investments and prepare for the future. By modernizing Northeast Grocery's IT infrastructure, we have not only helped them achieve significant savings but also improved their operational efficiency that enables them to reinvest in their stores, customer experience, and drive future innovations."

Looking at Northeast Grocery, which is headquartered in Schenectady, New York, it operates nearly 300 supermarkets across several northeastern states, employing over 30,000 associates. Recognized as number 46 on The PG 100 list of top grocery retailers in North America for 2025, Northeast Grocery has a rich history of over 150 years in the industry, known for pioneering grocery merchandising and exceptional customer service. The company is dedicated to providing high-quality products sourced sustainably, while simultaneously reducing environmental waste and energy consumption.

As DXC and Northeast Grocery continue their collaborative efforts, they are poised to integrate further advancements in AI and technologies, paving the way for an evolved digital landscape tailored to meet the changing needs of consumers. This partnership showcases the power of technology in enhancing operational efficiencies and delivering robust economic benefits within the competitive grocery retail sector. To explore more about this strategic partnership, visit DXC's official website for further insights and developments.

For those interested in the details of this transformation, you can view a comprehensive video outlining the partnership and its impacts on Northeast Grocery's operations and strategy at DXC Video Link.

Topics Business Technology)

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