DXC Technology Simplifies Complexity for Northeast Grocery, Saves Over $40M

DXC Technology helped Northeast Grocery simplify complexity and accelerate innovation roadmap through digital transformation. The company modernized Northeast Grocery's IT infrastructure over five years, resulting in over $40 million in savings and laying the groundwork for future innovations. DXC has supported Tops at numerous growth and development milestones since 2008, including its merger with Market 32 and Price Chopper.

DXC Technology (NYSE: DXC) has announced a significant milestone in its partnership with Northeast Grocery, Inc., resulting in over $40 million in savings through the modernization of the latter's IT infrastructure over five years. This strategic collaboration has been instrumental in simplifying complexities and accelerating Northeast Grocery's innovation roadmap.

Northeast Grocery, the parent company of Market 32 and Price Chopper and Tops Friendly Markets, operates nearly 300 stores across New York, Massachusetts, Vermont, Connecticut, Pennsylvania, and New Hampshire. The company's digital transformation, led by DXC, has been a cornerstone of its growth and operational efficiency.

DXC's efforts have included updating Northeast Grocery's mainframe system with a zLinux environment to increase compute capacity. This modernization has not only optimized operations but also laid the groundwork for future innovations, including the integration of generative AI. The partnership has been ongoing since 2008, supporting Northeast Grocery through various milestones, including its 2021 merger with Market 32 and Price Chopper.

Scott Kessler, EVP and CIO at Northeast Grocery, noted the importance of DXC's support in realizing productivity gains and driving synergies post-merger. "Throughout the transition, DXC enabled us to continue offering our customers the excellent service they've come to expect and helped us prepare for the future as we endeavor into AI and other next-generation technologies," he said.

Chris Drumgoole, President, Global Infrastructure Services at DXC, underscored the company's commitment to helping customers maximize the value of their technology investments. "By modernizing Northeast Grocery's IT infrastructure, we've helped deliver significant cost savings and greater operational efficiency, allowing them to reinvest in stores, customer experience, and future innovation," he added.

This collaboration highlights DXC's expertise in mainframe modernization and AI capabilities, demonstrating its ability to execute complex digital transformation initiatives while maintaining operational continuity. The $40 million in cost savings represents a substantial tangible value creation for Northeast Grocery, enabling the company to reinvest in customer experience and innovation.

The comprehensive nature of DXC's services, including software engineering, IT operations, device management, and workplace collaboration, indicates strong account penetration, typically associated with higher margins and revenue stability. This announcement not only showcases DXC's technical prowess but also its ability to deliver measurable business outcomes, reinforcing its position as a trusted technology services provider.

References:
[1] https://investors.dxc.com/investor-news/news-details/2025/DXC-Powers-Northeast-Grocerys-Digital-Transformation-Delivers-40-Million-in-Savings/default.aspx
[2] https://www.stocktitan.net/news/DXC/dxc-powers-northeast-grocery-s-digital-transformation-delivers-40-fml809gc2mq7.html
[3] https://www.prnewswire.com/news-releases/dxc-powers-northeast-grocerys-digital-transformation-delivers-40-million-in-savings-302527368.html