SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549


                            Form 10-K

                FOR ANNUAL AND TRANSITION REPORTS
             PURSUANT TO SECTIONS 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the Fiscal Year Ended February 28, 1998

                               OR

Transition report pursuant to section 13 of 15(d) of the Securities
Exchange Act of 1934 for a transition period

              Commission File Number           1-4434

                         GIANT FOOD INC.
        (Exact Name of Registrant as specified in its Charter)

     Delaware                              53-0073545
     (State of Incorporation)    (IRS Employer Identification No.)

                        6300 Sheriff Road
                    Landover, Maryland  20785
             (Address of Principal Executive Office)

                         (301) 341-4100
                 (Registrant's Telephone Number)


Securities registered pursuant to Section 12(b) of the Act:

                                   Name of Each Exchange on
       Title of Each Class            Which Registered     

       Class A Common Stock       American Stock Exchange
       (Non-Voting)               Philadelphia Stock Exchange, Inc.
       Par Value $1.00            Pacific Stock Exchange, Inc.

Securities registered pursuant to Section 12(g) of the Act:

                None<PAGE>

              Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

X<PAGE>
YesNo

             Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein, and will
not be contained, to the best of Registrant's knowledge, on definitive
proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K.



             As of May 1, 1998, 250,000 Voting Common Shares were
outstanding, all of which were held by affiliates.  Non-Voting Common
Shares outstanding were 60,349,059 and the aggregate market value of the
Non-Voting Common Shares (based upon the closing price of these shares on
the American Stock Exchange) of Giant Food Inc. held by non-affiliates was
approximately $2.3 billion.

   APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
       PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

             Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or 15(d) of
the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.

Yes           No      





















                                      2
<PAGE>
         (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

             The number of shares outstanding of each of the Registrant's
classes of Common Stock, as of May 1, 1998 is as follows:


Class A Non-Voting Common Stock     ($1.00 par value)     60,349,059
Class AL Voting Common Stock        ($1.00 par value)        125,000
Class AC Voting Common Stock        ($1.00 par value)        125,000


               DOCUMENTS INCORPORATED BY REFERENCE


             Portions of the Registrant's Annual Reports on Form 10-K for
the years ended February 27, 1993, and February 22, 1997, are incorporated
by reference in part IV of this Form 10-K.


Index to Exhibits                           Page 65







































                                      3<PAGE>
                              PART I

ITEM 1.       BUSINESS

              (a)     General Development of Business

              Giant Food Inc. (sometimes herein called "Giant" or the
"Company") was incorporated in Delaware in 1935.  The Company, together
with its subsidiaries (Giant of Maryland, Inc.; Giant of Salisbury, Inc.;
Cole Engineering, Inc.; Warex-Jessup, Inc.; Giant Construction Company,
Inc.; LECO, Inc.; Bursil, Inc.; GFS Realty, Inc.; GF McLean Shopping
Center, Inc.; Giant Automatic Money Systems, Inc.; Super G, Inc.; Montrose
Crossing, Inc.; Friendship Macomb SC, Inc.; Bayside Traffic Services of
Maryland, Inc; Giant of Talbot Co., Inc.; Giant of Cherry Hill, Inc.; Giant
of Friendship, Inc.; and Shaw Community Supermarket, Inc. [85% owned]) and
one affiliate company (Maryland Concession and Vending Company), operate a
chain of 179 stores selling, at retail, food, drugs, and general
merchandise in Washington, D.C., Maryland, Virginia, Delaware, New Jersey,
and Pennsylvania.  Of the Company's 179 stores, 112 are in the Washington,
D.C. Metropolitan Area, including surrounding counties of Maryland and
Virginia, 43 are in or near Baltimore, Maryland, and others are in
Fredericksburg, Charlottesville and Warrenton, Virginia; Easton, Salisbury,
Frederick, Prince Frederick, Eldersburg and Westminster, Maryland;
Delaware, New Jersey and Pennsylvania.  

              (b)     Financial Information About Industry Segments

              There is no financial information reported on industry
segments and lines of business apart from Giant's principal business of
operating supermarkets to sell, at retail, food, drugs, and general
merchandise.  Inasmuch as Giant did not engage in any line of business
which during either of its last three fiscal years accounted for 10% or
more of total sales and revenues, or 10% or more of income before taxes and
extraordinary items computed without deduction of loss resulting from
operations of any line of business, or a loss which equaled or exceeded 10%
of such income, no segment reporting is required.  During each of the last
three fiscal years, Giant's retail sales provided in excess of 90% of its
total sales and earnings.  Refer to Management Discussion and Analysis of
New Accounting Standards for information regarding future disclosures about
industry segments.

              (c)     Narrative Description of Business

              The majority of the Company's stores are located in shopping
centers, with the average food and food/pharmacy combination unit
generating an annual sales volume of approximately $23,600,000.  The
Company also operates freestanding drug stores in Bethesda, and Salisbury,
Maryland and Arlington, Virginia.  During the next fiscal year, the Company
plans to open two food-drug stores and begin  construction on four food-
drug stores that will open in the following year.  Additionally, five
supermarkets will be expanded and fifteen supermarkets will be remodeled
during the upcoming fiscal year.





                                      4<PAGE>

              Giant supermarkets are all self-service and offer a full line
of nationally advertised groceries, meat, produce, dairy products, seafood,
tobacco, flowers, prepared foods, and household and non-food items.  Giant
also sells beer and wine where permitted.  In addition, Giant sells
groceries, frozen foods, bakery products, and dairy products under its own
private labels.  Unbranded items such as meats and produce are also sold in
Giant's supermarkets.  For each of the fiscal years ended in February 1998,
1997, and 1996, respectively, the Company's sales were divided, as follows: 
meat, delicatessen, dairy, and seafood, 22%; grocery and non-food, 68%, and
fresh produce, 10%.

              Giant operates a full line service delicatessen in 172
stores.  Most of the bakery items such as bread, rolls, cakes, pies, and
pastries, marketed under the names of "Super G" and "Giant" are made in a
250,000 square-foot Company bakery locate in Silver Spring, Maryland.  The
Company operates three distribution centers of approximately 1.25 million
combined square feet in Landover, Maryland, one mile from the District of
Columbia line.  The main center also houses the Company's executive
offices, dairy processing plant, flower warehouse, ice cube production
plant, and a salvage building.  The Company owns an executive office
building of about 180,000 square feet together with a 750-car parking
garage.  Giant also owns a 760,000 square-foot dry grocery warehouse
located in Jessup, Maryland (including a 20,408 square-foot soft drink
bottling plant within that warehouse).  Giant also leases a 138,000 square-
foot frozen food distribution center and a 60,000 square-foot ice cream
manufacturing facility at the Jessup location.

              (i)     Giant produces for sale in its supermarkets bakery
goods and dairy products, ice cream, soft drinks and ice cubes.  These
items are manufactured by its Bakery, Dairy, Ice Cream Plant, Soft Drink
Bottling Plant and Ice Plant.  Giant also provides services such as
check-cashing, issuance of money orders, photographic film developing,
rental of home-care appliances, some catering, and cooperates in such
community-related projects as the sponsoring of "It's Academic," "Apples
for the Students" and other projects and activities related to community
improvement.

              Additionally, the Company warehouses and distributes to its
own stores flowers and gifts, snacks and magazines, and pharmaceuticals. 
The Company also has an in-house advertising agency, a trucking brokerage
operation, a vending-machine business, an import-export division and also
owns or is the controlling general partner of twenty-one shopping centers
and five freestanding stores.  Revenue from the Company's construction
division from outside construction is not material.  Transfer sales from
the above activities and from its manufacturing and processing operations
in support of its retail operations were eliminated in the consolidation of
the Company's financial statements.  

              (ii)    Giant has made no public announcement of any new
product or industry segment which is material or would require the
investment of a material amount of its assets.              

              (iii)   Raw materials for Giant's manufacturing and




                                      5<PAGE>
 processing operations are readily available.

              (iv)    Giant owns approximately 38 trademarks and service
marks registered by it in the U.S. Patent and Trademark Office.  Those
which were issued before November 16, 1989 have a term of twenty years and
those registered after November 16, 1989 have a term of ten years.  Each of
Giant's registrations may be renewed for successive terms of ten years so
long as each mark is in use.  Giant does not own any patents which are of
material importance to its operations.  Giant uses its trademarks to
identify and promote its more than 1,500 private label products.  Giant
uses its service marks to identify and distinguish its high quality
supermarket and pharmacy services from those of its competitors.  These
registrations afford Giant the legal right to use the marks nationwide.

              (v)     Giant's sales volume is not materially affected by
seasonality.

              (vi)    The Company generates sufficient cash from operations
to meet its working capital requirements.  The Company does not anticipate
any changes in its working capital requirements during the next fiscal
year.

              (vii)   Giant's business is not dependent upon a single or a
few customers.  Giant does not sell to any single customer or affiliated
group of customers goods or services in an amount which equals 10% or more
of its consolidated sales.

              (viii)  Giant's business is such that backlog ordering is not
done.

              (ix)    None of Giant's business is subject to renegotiation
of profits or termination of contracts or subcontracts at the election of
the Government.

              (x)     The retail food business is highly competitive, and
in the area in which Giant operates, some of the country's leading chains
are represented and compete vigorously with the Company, both in price and
in service.  On the basis of figures published in the April 27, 1998,
edition of Fortune magazine, the Company is ranked twelfth in gross
revenues among retail grocery chains in the United States.  Competition
from the other chains, independent grocery store operators and restaurants
and competition which exists with respect to particular products or groups
of products may adversely affect the Company's profit margins in ensuing
years.

              (xi)    Giant did not spend any material amount on
Company-sponsored research and development activities.  In addition, Giant
did not spend during any of the last five fiscal years any material amount
on customer-sponsored research activities relating to the development of
new products, services or techniques or the improvement of existing
products, services or techniques.


              (xii)   Giant's compliance with federal, state, and local




                                      6<PAGE>
laws which have been enacted or adopted regulating the discharge of
materials into the environment or otherwise relating to the protection of
the environment has not had and is not expected to have any material effect
upon its capital expenditures, its earnings, or its competitive position.

              (xiii)  At the end of Fiscal Year 1998, Giant had
approximately 28,000 full-time and part-time associates.  Approximately 
25,200 or 90% are represented under collective bargaining agreements.  


              (d)     Financial Information About Foreign and
                      Domestic Operations and Export Sales

              The amount of foreign sales and export sales done by Giant is
not material and is therefore not reported.

              (e)     Recent Developments

              On May 19, 1998, The 1224 Corporation ("1224") and
Koninklijke Ahold N.V., a corporation organized under the laws of the
Netherlands ("Ahold"), entered into a Stock Purchase Agreement (the "Stock
Purchase Agreement") which provides that Ahold will purchase from 1224 all
of its Class AC Shares at a price of $43.00 per share, net to the seller in
cash, and that Ahold will make a tender offer for all the issued and
outstanding Class A Shares at a price per share equal to the per share
price to be paid to 1224 for the Class AC Shares (the "Tender Offer").  If
Ahold or any of its affiliates acquires or enters into a binding agreement
to acquire all of the Class AL Shares before the expiration date of the
Tender Offer, the offer price will be increased to $43.50 per share.  The
Certificate of Incorporation of 1224 provides that the Class AC Shares
owned by it can only be sold as part of a transaction pursuant to which the
holders of Class A Shares are afforded the opportunity to participate in
such sale on equal terms with 1224.  The Stock Purchase Agreement provides
that Ahold may purchase the Class AC Shares from 1224 only if it purchases
the Class A Shares tendered pursuant to the Tender Offer. Ahold's
obligation to purchase the Class AC Shares that are tendered is subject to
a number of conditions, including the tender pursuant to the Tender Offer
of at least 65% of the Class A Shares outstanding on a fully diluted basis.

              In February, 1996, the Board of Directors of the Company
appointed a Strategic Planning Committee to consider the effect on the
Company and the holders of the Class A Shares of any proposed sale of the
Class AC Shares (the "Special Committee").  The Special Committee consists
of three directors who were elected by 1224 but who are not officers or
directors of 1224 or officers of the Company.  The Special Committee has
unanimously determined that the Tender Offer is fair to, and in the best
interests of, the Company and the holders of the Class A Shares and
unanimously recommended to the Board of Directors of the Company that the
Board recommend that the holders of the Class A Shares accept the Tender
Offer and tender their Class A Shares pursuant to the Tender Offer.  As of
the date hereof, the full Board of Directors has not taken a position with
respect to the Tender offer.  The five directors of the Company elected by
1224 have advised the Company that they intend to vote to recommend that
the holders of the Class A Shares accept the Tender Offer and tender their
Class A Shares pursuant to the Tender Offer.



                                      7<PAGE>

ITEM 2.       PROPERTIES

              The Company operates 179 stores of which 140 are food-drug
combination units, 36 are food stores and three are freestanding drug
stores.  There are 112 stores located in the Washington, D.C. Metropolitan
Area; 43 stores located in or near Baltimore, Maryland; and other stores
located in Fredericksburg, Charlottesville, and Warrenton in the state of
Virginia; Frederick, Prince Frederick, Easton, Salisbury, Eldersburg, and
Westminster in the state of Maryland; as well as stores located in
Delaware, New Jersey, and Pennsylvania.

              Ten of the Company's supermarkets are between fifteen to
twenty thousand square feet; twenty-five are between twenty to thirty
thousand square feet; fourteen are between thirty to forty thousand square
feet; fifty-five are between forty to fifty thousand square feet; forty-
four are between fifty and sixty thousand square feet, and thirty-one are
over sixty thousand square feet.

              The Company owns and operates three distribution centers of
approximately 1.25 million combined square feet in Landover, Maryland.  The
main center also houses the Company's executive offices (including an
executive office building of approximately 180,000 square feet), its dairy
processing plant, a flower warehouse, and an ice cube production plant.  A
dry grocery warehouse, containing approximately 760,000 square feet, is
located in Jessup, Maryland.  Also located at the Jessup complex is a
138,000 square-foot frozen food distribution center and a 60,000 square-
foot ice cream manufacturing facility.  The Landover complex and the Jessup
complex each contain approximately 85 acres.  The Company's bakery is
located in Silver Spring, Maryland, in a Company-owned building containing
250,000 square feet.

              The Company, through its wholly-owned subsidiary, GFS Realty,
Inc., also owns or is the controlling general partner of twenty-one
shopping centers and five freestanding combination food/drug stores. The
shopping centers are located at:






  















                                      8<PAGE>



              8320 Old Keene Mill Road, Springfield, Virginia
              6223 Baltimore National Pike, Baltimore, Maryland
              7137 Columbia Pike, Annandale, Virginia
              1228 Elden Street, Herndon, Virginia
              46 Bureau Drive, Gaithersburg, Maryland
              7546 Annapolis Road, Lanham, Maryland
              12445 Hedges Run Road, Lakeridge, Virginia
              3501 Plank Road, Fredericksburg, Virginia
              15791 Columbia Pike, Burtonsville, Maryland
              20044 Goshen Road, Gaithersburg, Maryland
              7501 Huntsman Blvd., Springfield, Virginia
              1454 Chain Bridge Road, McLean, Virginia
              12051 Rockville Pike, Rockville, Maryland
              3336 Wisconsin Avenue, N.W., Washington, D.C.
              5700 South-East Crain Highway, Upper Marlboro, Maryland
              20961 Southbank Street, Sterling, Virginia
              10100 Dumfries Road, Manassas, Virginia
              382 Egg Harbor Road, Turnersville, New Jersey
              20944 Frederick Road, Germantown, Maryland
              1925 East Joppa Road, Baltimore, Maryland
              200 W. Swedesford Road, Devon, Pennsylvania
                (under construction)

     The freestanding combination food/drug stores are located at:
              3757 Old Court Road, Pikesville, Maryland
              1734 York Road, Lutherville, Maryland
              400 East Evesham Road, Cherry Hill, New Jersey  
              542 Berlin-Cross Keys Road, Winslow Township, New Jersey
              110 Stemmers Run Road, Essex, Maryland

     Also, through GFS Realty, Inc., the Company is a limited partner of
one shopping center being managed by an outside general partner.  This
shopping center is located at:

              6050 Daybreak Circle, Clarksville, Maryland

     In addition, through long-term leases, GFS Realty, Inc., operates and
manages ten shopping centers and one freestanding food/drug store.  These
are located at:

              8750 Arliss Street, Silver Spring, Maryland
              948 Bay Ridge Road, Annapolis, Maryland
              5730 Edsall Road, Alexandria, Virginia
              13600 Laurel Bowie Road, Laurel, Maryland
              9580 Livingston Road, Ft. Washington, Maryland
              8819 Centreville Road, Manassas, Virginia
              1131 Merritt Boulevard, Dundalk, Maryland
              17821 Georgia Avenue, Olney, Maryland
              7200 Cradlerock Way, Columbia, Maryland
              2401 Wooton Parkway, Rockville, Maryland

     The freestanding combination food/drug store is located at:

              3130 Solomons Island Road, Edgewater, Maryland

                                      9<PAGE>

              In each shopping center, the Company is the largest tenant
occupying approximately 25% to 90% of the space.

              The table below sets forth certain information with respect
to changes in the number of the Company's supermarkets (including
combination food/pharmacy stores and freestanding drug stores) during the
past five years:

                     Number at                          Number at
Fiscal Year        Beginning of Year  Opened  Closed   End of Year

February 26, 1994         158            4      2         160
February 25, 1995         160            4      0         164
February 24, 1996         164            7      2         169
February 22, 1997         169            8      3         174
February 28, 1998         174           11      6         179

              With the exception of the bakery, the twenty-one shopping
centers and the five freestanding combination food/drug stores noted above,
the distribution centers at Landover and the dry grocery warehouse at
Jessup, all the properties occupied by the Company are held under leases
which provide for minimum rentals and, in some cases, additional rentals
based on percentages of sales.

              At February 28, 1998, the Company had entered into
leases covering stores, warehouses, and equipment on which the minimum
annual rentals for the succeeding years are as follows:

              Minimum Annual Rentals (In Thousands)

Year           Capital Leases             Operating Leases

1999                22,675                      36,966
2000                22,500                      35,968
2001                22,394                      34,531
2002                22,223                      33,726
2003                21,738                      33,233
Later Years        284,366                     527,295

ITEM 3.       LEGAL PROCEEDINGS

              From time to time, the Company is involved in legal
proceedings that have arisen in the ordinary course of business. 
Currently, there are claims alleging acts of employment
discrimination.  Management, after consulting with legal counsel, is
of the opinion that the outcome of such matters will not have a
material impact on the consolidated financial position of the Company.

ITEM 4.       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

              None.






                                    10<PAGE>

                             PART II


ITEM 5.       MARKET PRICE OF AND DIVIDENDS ON THE COMPANY'S COMMON
              STOCK AND RELATED STOCKHOLDER MATTERS

              (a)     Market Information

              Principal markets on which Giant's Class A Common Stock
is traded:  American, Philadelphia and Pacific Stock Exchanges.

              The table below presents the high and low market prices
for Giant's Class A Common shares.

                    Common Stock Price Range

Fiscal 1998                              Fiscal 1997

Quarter Ended     High     Low     Quarter Ended     High     Low  

May 17            $33.75   $31.00   May  18          $33.50   $30.38
Aug 9              33.94    32.19   Aug. 10           36.13    33.13
Nov 1              33.94    28.38   Nov.  2           35.50    32.38
Feb 28             36.63    30.13   Feb. 22           36.13    31.88

              The last sale price of Giant's Class A Common
(Non-Voting) shares on the American Stock Exchange on May 1, 1998 (the
latest most practicable date) was $37.375.

              (b)     Holders

              The approximate number of holders of record for Giant's
Class A Non-Voting Stock as of May 1, 1998: 23,403 (includes street
name shareholders).

              The number of holders of record for Giant's Class AL
Voting Stock as of May 1, 1998:  1.

              The number of holders of record for Giant's Class AC
Voting Stock as of May 1, 1998:  1.

















                                    11<PAGE>

              (c)     Dividends

              The table below presents dividend information for
Giant's Common shares.

              Dividends Declared Per Share of Common Stock
              Fiscal 1998                      Fiscal 1997

              April   $.195                    April   $.19

              July     .195                    July     .19

              October  .195                    October  .19

              January  .195                    January  .19

                      $.78                             $.76

              The Promissory Note Purchase Agreement with The
Prudential Insurance Company of America (see Note 4 to the
Consolidated Financial Statements, page 32) includes certain
restrictive covenants which, among other things, prohibit the Company
from paying dividends after February 22, 1986, aggregating more than
50 percent of its cumulative "consolidated net earnings" (as defined
in the Agreement), less the aggregate of dividends paid and less the
net amount expended to repurchase or redeem any of its capital stock
after February 22, 1986.  At February 28, 1998, the specified levels
were $90,553,000 in excess of such aggregate amounts of dividends and
distributions.  The Company anticipates the continuation of its
current policies of paying dividends.



























                                    12<PAGE>

ITEM 6.       SELECTED FINANCIAL DATA

                              Year Ended (1), (2), (3), (4)           


                1998        1997        1996        1995       1994    

Sales        $4,230,640  $3,880,959  $3,860,579  $3,695,627 $3,567,468

Net Income       71,190      85,504     102,153      94,161     95,231(*)

Earnings per share
 Basic            $1.19       $1.43       $1.72       $1.59      $1.60(*)
 Diluted          $1.18       $1.42       $1.71       $1.58      $1.59

Total assets $1,521,882  $1,503,525  $1,447,139  $1,416,710 $1,357,813

Long-term debt,
net of current
portion:
  Notes and
  mortgages      27,134      39,039      45,959      57,805     86,068

  Obligations
  under capital
  leases        156,041     144,953     142,863     140,946    141,062

Total
 long-term debt 183,175     183,992     188,822     198,751    227,130

Cash dividends
 declared per
 Common share     $0.78       $0.76       $0.74       $0.72      $0.70
                           
(1)  Year ends last Saturday in February.
(2)  Thousands of dollars except per-share figures.
(3)  Fiscal 1997 results include an adverse impact from a five-
     week labor dispute.  See Management's Discussion and Analysis of 
     Financial Condition and Results of Operation.
(4)  Fiscal 1998 was a 53 week year. 
(*)  Reflects impact of change in accounting for income taxes.  Change    
     equaled $3.9 million of income, equal to 7 cents per share.















                                    13<PAGE>
ITEM 7.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
              CONDITION AND RESULTS OF OPERATIONS

GENERAL

The Company operates a chain of retail supermarkets under the name
"Giant" in the Washington, D.C. and Baltimore metropolitan areas and in
other areas of Maryland and Virginia and under the name "Super G" in
Delaware, Pennsylvania, and New Jersey.  The Company produces bakery
goods, dairy products, ice cream, soft drinks, and ice cubes for sale in
its supermarkets.  The Company also has extensive warehousing and
distribution facilities to support its operations.

The Company opened eleven food-drug combination stores during the 1998
fiscal year, including four additional Super G stores in Pennsylvania. 
Two of the new stores replaced older units in the Washington, DC area,
resulting in an increase of an average of 21,600 square feet in the
specific market area.  The Company also closed a 21,750 square foot food
store in Washington, D.C., a 24,000 square foot food store in Oxon Hill,
Maryland, a 20,511 square foot food store in Columbia, Maryland and a
24,000 square foot food store in Baltimore, Maryland.  The net effect of
these changes was to increase the Company's total retail footage by
493,000 square feet to 8.1 million, an increase of 6.5% over the prior
year.  At the end of the fiscal year, the Company operated 179 stores of
which 140 are food-drug combination units, 36 are food stores, and three
are freestanding drug stores.


RESULTS OF OPERATIONS

The Company's earnings for fiscal 1998 were $71.2 million or $1.19 per
share (basic), as compared with earnings of $85.5 million or $1.43 per
share (basic)in the 1997 fiscal year.  Earnings for fiscal 1996 were
$102.2 million or $1.72 per share (basic).  Earnings were 1.68% of sales
in the 1998 fiscal year, 2.20% of sales in the prior year and 2.65% in
fiscal 1996.  Earnings patterns were markedly different in the first
three quarters of fiscal 1998 as compared to the fourth quarter.  For the
first three quarters, earnings were $34.8 million or $.59 per share
(basic), as compared to total earnings of $67.8 million or $1.14 per
share (basic) for the corresponding periods in fiscal 1997.  For the
fourth quarter, earnings including a non-recurring pre-tax gain of $24
million were $36.4 million or $0.60 per share (basic), as compared to
total earnings of $17.7 million and per share (basic) earnings of $0.29
in the corresponding period in fiscal 1997.

Sales for the 1998 fiscal year were $4.23 billion compared to sales of
$3.88 billion in the prior year.  The current year contained 53 weeks
compared to 52 weeks in the prior year.  Same store sales, adjusted for
same number of weeks, for the 1998 fiscal year were up $129 million or
3.34% as compared to fiscal 1997, reflecting a significant increase
during the fourth quarter both in total sales and in same store sales as
compared to the fourth quarter of fiscal 1997.  Sales results for the
first three quarters of fiscal 1998 totaled $2.81 billion, which
represented an increase of $140.6 million, or 5.3%, over the same period




                                    14<PAGE>
in fiscal 1997.  Same store sales during the first three quarters
increased 1.75%.  Significant factors in this growth in sales were
promotional activities that the Company undertook during the fiscal year
to increase customers and number of items sold.  The number of items sold
increased by 7.1% during this period.

The Company's fourth quarter sales for the 1998 fiscal year totaled
$1,423 million, which represented an increase of $209 million, or 17.2%
over the same period in fiscal 1997.  Same store and same number of weeks
sales during the fourth quarter of 1998 increased 6.9% as compared to
fiscal 1997.  These increases in the fourth quarter sales were
attributable to the prior year having reduced sales because of a five-
week strike by the Company's truck drivers.

Sales for the 1997 fiscal year were $3.88 billion, representing an
increase of $20.4 million or .5%, over sales of $3.86 billion for the
1996 fiscal year.  Same store sales for the 1997 fiscal year decreased
2.4% over fiscal 1996. This decrease was principally the result of the
five week strike in the fourth quarter of fiscal year 1997.

The cost of sales for fiscal 1998 was 71.95% as compared to 70.46% for
fiscal 1997, and 70.14% for fiscal year 1996.  The increase in cost of
sales as a percentage of sales in fiscal 1998 was attributable to both
the greater promotional activity during the fiscal year and the cost
incurred in the fourth quarter for preparation of a potential work
stoppage at the Company's distribution centers in November 1997.  The
cost of sales for the fourth quarter of fiscal 1998 was 72.06% compared
to 72.26% in the fourth quarter of fiscal 1997.  The slight decrease in
cost of sales in the fourth quarter was caused by the prior year
containing the effect of the five week strike and the current year
containing increased costs attributable to the contracting of outside
sources to supply the stores in the case of a potential break in service
at the expiration of the warehouse workers' contract.

The Company uses the LIFO method for its nonperishable inventory.  During
the last three years, the Company has experienced low to moderate
inflation as it relates to these inventories.  This year's LIFO charge of
$3.2 million compares with charges of $4.3 million and $4.7 million for
the two prior fiscal years.  As a percentage of sales, the LIFO charges
were .08% in 1998, .11% in 1997, and .12% in 1996. 

For many years, the Company has sought to improve its operating results
by engaging in various activities which are used in support of its retail
operations.  The Company maintains manufacturing and processing
activities in bakery, dairy, ice cream, beverage and ice cube operations. 
Other areas maintained in support of the retail stores are wholesaling
activities including produce, pharmaceutical, snacks, magazine and
vending operations.  The Company has also developed support activities in
the area of real estate operations through its GFS Realty subsidiary,
which currently owns or manages thirty-eight properties which include
shopping centers and free-standing stores.  Transfer sales from
manufacturing, processing and wholesaling activities were eliminated in
the consolidated financial statements.





                                    15<PAGE>

Selling, general, and administrative expenses decreased to 25.05% of
sales in fiscal 1998 compared to 25.75% in fiscal 1997 and 25.33% in
fiscal 1996.  This year's decrease was principally caused by a non-
recurring gain of $23.7 million as a reduction of overall employee
benefit costs.  Management is instituting various cost containment
programs to achieve a lower selling, general and administrative expense,
as a percent of sales, in the future.  During the current year expenses
relating to development and implementation of these programs were
incurred.  The current year contains an increase in general and
administrative expenses including occupancy costs related to new stores. 
The effect of the increases in occupancy costs will be reduced as the
planned new stores reach projected sales levels. 

There was an increase in fiscal year 1998 net interest expense, $9.8
million compared to $6.8 million in the prior year.  This was principally
the result of lower interest income due to lower invested cash balances
throughout the year.

Income before income taxes was $117.2 million for fiscal 1998,
representing 2.77% of sales, compared to $140.5 million, representing
3.62% of sales in the prior year.  The decrease of 16.6% in income before
taxes resulted from the increased promotional activity relating to
building sales and recapturing lost market share caused by the five week
strike that ended in January 1997.  Income before income taxes for the
1996 fiscal year was $167.8 million, 4.35% of sales.  The decrease in
income from fiscal 1996 to fiscal 1997 of $27.4 million, or 16.3%
resulted largely from the effect of the work stoppage and the positive
effect of the weather on fiscal 1996.

The provision for income taxes yielded an effective tax rate of 39.2% for
the current year compared to 39.1% in the prior years.


COMPETITIVE ENVIRONMENT 

Competition in the Washington, D.C. and Baltimore metropolitan areas,
where the majority of the Company's stores are located, has increased
considerably over the past several years as additional supermarket chains
and alternative format competitors have entered the market.  Further, the
stores in Pennsylvania, New Jersey, and Delaware are faced with intense
competition from supermarket chains which are more established in these
markets.  The operation in these states has not yet become profitable. 
The Company is committed to maintaining its current market share
throughout its area of operations by offering aggressive promotions.
Management believes that such promotions, which also include the programs
instituted following the drivers' strike in the fourth quarter of Fiscal
Year 1997, will put continuing pressure on margins and earnings which
will have to be addressed by cost control measures.









                                    16<PAGE>

LABOR CONTRACTS

The Company employs approximately 28,000 full and part-time associates of
which approximately 25,200 are represented under collective bargaining
agreements.  During the current year the Company completed the renewal of
two major labor contacts that were set to expire during this year.  The
contract with the approximately 900 bakery workers at the manufacturing
plant and the in-store bakeries was renewed through August 2000.  The
contract with the approximately 1,150 warehouse associates was also
renewed through May 2001.  The contract terms are similar to the contract
with the truck drivers and sustains the Company's options to use
alternative methods of supplying the Company's stores when it is
advantageous to the Company.  Both the bakery and warehouse contracts
were renewed without any labor disruption.


FINANCIAL CONDITION

CASH, CASH EQUIVALENTS, INVESTMENTS AND WORKING CAPITAL

Cash and cash equivalents include highly liquid investments with an
original maturity of three months or less.  Short-term investments
consist primarily of United States government and agency securities
purchased with an original maturity of more than three months.  As of
February 28, 1998, the Company's cash, cash equivalents and short-term
investments totaled $149 million, compared with $178 million and $246
million at the close of each of the two prior years.  The lower cash is
partially attributable to reduced earnings and higher financing
activities, principally the repayment of debt and acquisition of treasury
stock.

Net cash provided by operations amounted to $177 million for the current
fiscal year, $122 million for the preceding fiscal year and $199 million
for the 1996 fiscal year.  (See Consolidated Statements of Cash Flows for
further details.)

Cash outlays for property, plant and equipment were $137 million for the
current year, and $146 million and $128 million for the prior two years. 
These expenditures were related to the additional new stores and
maintaining the existing store base.

Working capital at the fiscal year end was $173 million compared with
$199 million and $209 million at the close of the two prior years.  The
working capital ratio is 1.50 to 1, compared with 1.55 to 1 and 1.62 to 1
at the end of the two prior years, respectively.  Including the LIFO
reserve, working capital would be $267 million currently, a 1.76 to 1
ratio, compared with $289 million, a 1.80 to 1 ratio and $295 million, a
1.87 to 1 ratio at the end of the two prior years, respectively.









                                    17<PAGE>

CAPITAL EXPENDITURES

The Company plans to open two stores in the coming year, one of which
will be in Pennsylvania.  The Pennsylvania store will be in a shopping
center developed by GFS Realty, the Company's real estate subsidiary. 
Although store development is unpredictable, the Company believes that
this is an estimate of anticipated growth.  The Company also plans on
beginning construction on four food-drug stores that will open in the
following year.  Additionally, five supermarkets will be expanded and
fifteen supermarkets will be remodeled during the upcoming year.  Capital
expenditures for the coming year will be approximately $130 million. 
This capital expenditure program is subject to continuing change and
review. In the normal course of operations, the Company replaces stores
and closes unprofitable stores.  The Company plans to close two smaller
stores over the coming year.  The impact of future store closings is not
expected to be material.  The Company believes that the liquid assets on
hand plus its cash flow from operations will be sufficient to support
ongoing business levels, including the planned capital expenditure
program, debt service, and dividends.


CAPITALIZATION

Notes and mortgages decreased $16.8 million due to scheduled principal
payments and the voluntary retirement of debt.  The retirement resulted
in a net interest benefit to the Company. Scheduled principal
amortization during the upcoming 1999 fiscal year is expected to exceed
the amount of any new financing during that year.

At the close of the 1998 fiscal year, shareholders' equity as a
percentage of capitalization (long-term debt plus shareholders' equity)
was 83% compared with 83% and 81% for the prior two fiscal years. 
Shareholders' equity at the year end was $903 million, compared with $874
million a year earlier.  Long-term debt consists of $27 million of notes
and mortgages at an average interest cost of 10.2%, and $156 million of
obligations under capital leases.  At the close of the prior year, the
comparable balances were $39 million and $145 million, respectively.


DIVIDENDS

For the current year, cash dividends of $46.5 million were paid at the
rate of 78 cents per share.  For the prior two years dividend payments
were $45.1 million and $43.6 million, at the rate of 76 cents and 74
cents per share.  Fiscal year 1998 marks the 39th consecutive year of
dividend payments, beginning in 1959 when the Company went public.











                                    18<PAGE>

INFLATION AND CHANGING PRICES

Inflation continues to moderately increase costs to the Company including
the cost of merchandise, labor, utilities and the cost of acquiring
property, plant and equipment.  The Company uses the LIFO method of
accounting for 83% of its inventories.  Under this method, the cost of
merchandise sold approximates current cost and thus reduces the
distortion, if any, in reported income due to increasing costs.  The
historical costs of property, plant and equipment recorded by the Company
were incurred over a period of many years.  The cost of replacement of
property, plant and equipment is generally greater than the cost on the
books of the Company as a result of inflation that has occurred over the
years since property, plant and equipment were placed in service.


NEW ACCOUNTING STANDARDS

In June 1997 the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 131, "Disclosures
about Segments of an Enterprise and Related Information."  This new
standard requires public business enterprises to report information about
operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in
interim financial reports issued to shareholders.  It also establishes
standards for related disclosures about products and services, geographic
areas and major customers.  This statement is effective for fiscal years
beginning after December 15, 1997 and will not impact the Company's
consolidated financial position, results of operations or cash flows, and
any effects, while not yet determined by the Company, will be limited to
the presentation of its disclosures.  


OTHER MATTERS

The Company is currently working to resolve the potential impact of the
Year 2000 on the processing of date-sensitive information.  Costs of
making the Company's systems Year 2000 compliant are estimated to be
approximately $6 million.  The costs associated with this effort are
expensed as incurred and the balance of the costs are not expected to
have a material adverse impact on the Company's financial position,
results of operations or cash flows in future periods.  However, if the
Company or its vendors are unable to resolve such processing issues in a
timely manner, it could result in a material financial risk. 
Accordingly, the Company plans to devote the necessary resources to
resolve all significant Year 2000 issues in a timely manner.










                                    19<PAGE>

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995-SAFE HARBOR CAUTIONARY
STATEMENT

Various statements in this section, which sets forth management's
discussion and analysis of the Company's financial condition and results
of operations, statements in other portions of this document relating to
financial projections, plans and objectives of management for future
operations, future economic performance, or the assumptions underlying or
relating to such statements, statements in other portions of this
document preceded by, followed by or that include the words "believes,"
"anticipates," or similar expressions, and other statements except for
historical information provided in this report, are forward-looking
statements under the Private Securities Litigation Reform Act of 1995. 
These forward-looking statements include, but are not limited to, cost
containment programs, market share, and projected sales.  From time to
time, the Company may also make other written or oral disclosures
containing forward-looking statements.

The Company's actual results for future periods may differ materially
from those in the forward-looking statements.  The actual results may be
affected by, among other things, the competitive environment in the
Company's market area.  In addition, all of the Company's forward-looking
statements are subject to inherent uncertainties and risk, including
among others: business and economic conditions generally in the Company's
operating regions; changes in inflation; changes in consumer spending;
pricing pressures and other competitive factors; supplier relationships
and costs; results of the Company's programs to reduce costs; ability to
recruit and develop employees; relations with union bargaining units;
changes in governmental legislation or regulation; and adverse results
from ligation or claims.  Consequently, these factors, other factors
mentioned in this document and in other public filings, press releases
and oral statements of the Company, and other unidentified factors, may
cause actual events and results to vary significantly from those included
in or contemplated or implied by the Company's forward-looking
statements.


ITEM 7A.      QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Company's market capitalization as of January 28, 1997, was less than
$2.5 billion.  Accordingly, no disclosure is required under this item.
















                                    20<PAGE>
ITEM 8.       FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT ACCOUNTANTS


To the Board of Directors and Shareholders of Giant Food Inc.

In our opinion, the accompanying consolidated balance sheets and the
related consolidated statements of income, of cash flows and of changes
in shareholders' equity present fairly, in all material respects, the
financial position of Giant Food Inc. and its subsidiaries at February
28, 1998, February 22, 1997 and February 24, 1996, and the results of
their operations and their cash flows for the years then ended in
conformity with generally accepted accounting principles.  These
financial statements are the responsibility of the Company's management;
our responsibility is to express an opinion on these financial statements
based on our audits.  We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for the opinion expressed
above.


/S/

PRICE WATERHOUSE LLP

Washington, D.C.
March 30, 1998
























                                    21<PAGE>
CONSOLIDATED STATEMENTS OF INCOME


Fifty-three weeks ended February 28,1998, fifty-two weeks ended February
22, 1997 and February 24, 1996

Dollar amounts in thousands except per share data

                                     1998          1997        1996

SALES                             $4,230,640   $3,880,959   $3,860,579


COSTS AND EXPENSES
Cost of sales                      3,043,985    2,734,530    2,707,682
Selling, general and
 administrative (including a
 non-recurring gain of $23,674
 for 1998 employee benefit costs)  1,059,674      999,195      977,835

Interest expense, net                  9,829        6,779        7,235 
                                   4,113,488    3,740,504    3,692,752

INCOME BEFORE INCOME TAXES           117,152      140,455      167,827

PROVISION FOR INCOME TAXES            45,962       54,951       65,674

NET INCOME                        $   71,190   $   85,504   $  102,153

EARNINGS PER SHARE 
  BASIC                                $1.19        $1.43        $1.72
  DILUTED                              $1.18        $1.42        $1.71


The accompanying notes are an integral part of the consolidated financial
statements.






















                                    22<PAGE>

                         CONSOLIDATED BALANCE SHEETS

February 28, 1998, February 22, 1997 and February 24, 1996 
Dollar amounts in thousands

ASSETS
                                          1998        1997       1996
CURRENT ASSETS
Cash and cash equivalents             $   28,857  $   40,981  $  111,133
Short-term investments                   120,278     137,096     134,677
Receivables                               63,560      53,452      47,771
Income taxes receivable                    8,723       8,501
Inventories                              274,137     291,644     225,801
Deferred income taxes                     23,068      22,579      24,003
Other current assets                       3,450       3,623       2,886

Total current assets                     522,073     557,876     546,271


PROPERTY, PLANT AND EQUIPMENT         
Land                                      90,113      85,109      79,639
Buildings and improvements               383,795     347,921     319,982
Leasehold improvements                   210,280     196,243     170,794
Fixtures and equipment                   882,051     840,566     802,173

                                       1,566,239   1,469,839   1,372,588
Less accumulated depreciation            725,190     688,238     643,693

                                         841,049     781,601     728,895
Equipment deposits and construction 
   in progress                            23,699      33,886      32,496

                                         864,748     815,487     761,391

PROPERTY UNDER CAPITAL LEASES, net of
  accumulated amortization
  (1998, $77,770; 1997, $71,192;
   1996, $65,018)                        116,711     106,565     105,839


REAL ESTATE HELD FOR FUTURE DEVELOPMENT    5,495      11,875      16,902


OTHER ASSETS                              12,855      11,722      16,736

                                      $1,521,882  $1,503,525  $1,447,139

The accompanying notes are an integral part of the consolidated financial
statements.








                                    23<PAGE>

LIABILITIES AND SHAREHOLDERS' EQUITY        1998       1997        1996

CURRENT LIABILITIES
Current portion of long-term debt
  Notes and mortgages                   $    1,905  $   6,821  $   6,846
  Obligations under capital leases           6,621      5,839      5,310
Accounts payable                           259,020    248,368    219,253
Accrued expenses
  Compensation related                      66,563     82,741     84,277
  Other                                      2,874      3,955      1,486
Dividends payable                           11,710     11,393     11,009
Income taxes payable                                               9,061

Total current liabilities                  348,693    359,117    337,242


LONG-TERM DEBT
Notes and mortgages                         27,134     39,039     45,959
Obligations under capital leases           156,041    144,953    142,863
                                           183,175    183,992    188,822


OTHER LIABILITIES
Deferred income taxes                       22,294     12,675     12,543
Accrued insurance claims                    34,334     38,482     47,964
Other                                       30,773     35,606     37,811
                                            87,401     86,763     98,318

COMMITMENTS AND CONTINGENCIES                

SHAREHOLDERS' EQUITY                
Common stock, $1 par, all classes           60,257     60,257     60,257
Capital in excess of par value               2,299      2,147        388
Retained earnings                          843,402    819,060    779,000
Accumulated other comprehensive income        (243)      (449)      (108)

                                           905,715    881,015    839,537
Less Class "A" stock held in treasury,
 at cost (1998, 100,627 shares; 1997,
 285,464 shares; 1996, 702,782 shares)       3,102      7,362     16,780
                                           902,613    873,653    822,757
                                        $1,521,882 $1,503,525 $1,447,139


The accompanying notes are an integral part of the consolidated financial
statements.











                                    24<PAGE>
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Fifty-three weeks ended February 28, 1998, fifty-two weeks ended February
22, 1997 and February 24, 1996 

Dollar amounts in thousands except share amounts

                                          Accumulated            Total
              Capital in  Treasury stock     Other               Share-
              excess of     (Class "A")  Comprehensive Retained  holders'
              par value   Shares    Cost    Income     earnings   equity

Balance,
 2-25-95       $       1,002,464   $23,937   $(1,648)  $720,784 $755,456

Comprehensive income
 Net income                                             102,153         
 Unrealized security 
  holding gains(losses)                        1,540                     
 Total comprehensive income                                      103,693
Stock options
 exercised        (494) (280,768)   (6,705)                        6,211 
Tax benefit under
 stock option
 plans             724                                               724
Awards under stock 
 bonus plan        158   (18,914)     (452)                          610
Dividends
 ($.74 per share)                                       (43,937) (43,937)
Balance,                                                                
 2-24-96           388   702,782    16,780     (108)    779,000  822,757

Comprehensive income
 Net income                                              85,504         
 Unrealized security 
  holding gains(losses)                        (341)                    
 Total comprehensive income                                       85,163
Stock options
 exercised        (227) (503,875)  (12,494)                       12,267
Treasury stock acquired
 upon exercise of
 stock options           105,100     3,554                        (3,554)
Tax benefit under 
 stock option    
 plans           1,850                                             1,850
Awards under stock
 bonus plans       136   (18,543)     (478)                          614
Dividends
 ($.76 per share)                                       (45,444) (45,444)
Balance,                                                                
 2-22-97         2,147   285,464     7,362     (449)    819,060  873,653







                                    25<PAGE>


CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - CONTINUED

Fifty-three weeks ended February 28, 1998, fifty-two weeks ended February
22, 1997 and February 24, 1996

Dollar amounts in thousands except share amounts


                                          Accumulated            Total
              Capital in  Treasury stock     Other               Share-
              excess of     (Class "A")  Comprehensive Retained  holders'
              par value   Shares    Cost    Income      earnings   equity 
                                                                  
Comprehensive income
 Net income                                             71,190        
 Unrealized security 
  holding gains(losses)                         206                     
 Total comprehensive income                                       71,396
Stock options
 exercised      (1,164) (362,634)  (10,136)                        8,972
Purchase of
  treasury stock         195,989     6,423                        (6,423)
Tax benefit under 
 stock option   
 plans           1,253                                             1,253
Awards under stock
 bonus plan         63   (18,192)     (547)                          610
Dividends
 ($.78 per share)                                      (46,848)  (46,848)
Balance,                                                                
 2-28-98        $2,299   100,627   $ 3,102    $(243)  $843,402  $902,613

                             Common stock, all classes
                               Shares        Par value
Balance, February 25, 1995   60,256,620       $60,257
Balance, February 24, 1996   60,256,620        60,257
Balance, February 22, 1997   60,256,620        60,257
Balance, February 28, 1998   60,256,620        60,257


The accompanying notes are an integral part of the consolidated financial
statements.














                                    26<PAGE>
                     CONSOLIDATED STATEMENTS OF CASH FLOWS

Fifty-three weeks ended February 28, 1998, fifty-two weeks ended February
22, 1997 and February 24, 1996
Dollar amounts in thousands
                                                 1998     1997     1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                    $ 71,190 $ 85,504 $102,153
Adjustments to reconcile net income to net
 cash provided by operating activities  
Depreciation                                    94,040   96,743   93,932
Amortization of property under capital leases    6,578    6,174    5,875
Stock awarded as compensation                      610      614      610
Other adjustments, net                           2,040      535    1,613
Net increase (decrease) in cash from changes
 in operating assets and liabilities,
 detailed below                                  2,145  (67,835)  (5,528)

Net cash provided by operating activities      176,603  121,735  198,655

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of short-term investments            (153,001)(172,820) (73,782)
Proceeds from sales of short-term investments  148,160  138,697   19,826
Proceeds from maturity of
  short-term investments                        21,865   31,141   14,595 
Capital expenditures                          (136,921)(145,812)(128,107)
Proceeds from dispositions of other assets        -      13,998     -
Additions to other assets                       (3,173)  (9,518)  (7,598)

Net cash used in investing activities         (123,070)(144,314)(175,066)

CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes and mortgages      (16,821)  (6,945) (28,263)
Reduction of obligations under capital leases   (4,854)  (4,281)  (3,858)
Issuance of common stock                         8,972    8,713    6,211
Purchases of treasury stock                     (6,423)     -        -   
Dividends paid                                 (46,531) (45,060) (43,591)

Net cash used in financing activities          (65,657) (47,573) (69,501)

Net decrease in cash and cash equivalents      (12,124) (70,152) (45,912)
Cash and cash equivalents at beginning of year  40,981  111,133  157,045

Cash and cash equivalents at end of year      $ 28,857 $ 40,981 $111,133














                                    27<PAGE>
                CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

Fifty-three weeks ended February 28, 1998, fifty-two weeks ended February
22, 1997 and February 24, 1996

Dollar amounts in thousands


CASH FLOWS FROM CHANGES IN OPERATING ASSETS AND LIABILITIES
                                              1998      1997      1996
(Increase) decrease in assets
   Receivables                             $(10,108) $ (5,681) $ (3,904)
   Inventories                               17,507   (65,843)   12,177 
   Income taxes receivable                    1,031    (8,501)      -   
   Deferred income taxes                       (489)    1,645    (2,474)
   Other current assets                         173      (737)     (742)
Increase (decrease) in liabilities
   Accounts payable                          10,652    29,115    (6,576)
   Accrued expenses                         (17,259)      933       454
   Income taxes payable                        -       (7,211)   (7,023)
   Deferred income taxes                      9,619       132    (9,325)
   Accrued insurance claims                  (4,148)   (9,482)   12,493
   Other liabilities                         (4,833)   (2,205)     (608)
Net cash provided by (used in) changes in
   operating assets and liabilities        $  2,145  $(67,835) $ (5,528)

The accompanying notes are an integral part of the consolidated financial
statements.






























                                    28<PAGE>
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Fifty-three weeks ended February 28, 1998, fifty-two weeks ended February
22, 1997 and February 24, 1996

Dollar amounts in thousands except per share data

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Giant Food Inc. (the "Company") operates a chain of 179 retail
supermarkets and drug stores selling food, pharmacy and general
merchandise.  The majority of the Company's stores are located in the
Washington, D.C. and Baltimore, Maryland metropolitan areas as well as
Pennsylvania, New Jersey and Delaware.  A majority of the Company's
workforce is subject to labor agreements requiring periodic negotiation.

The Company uses a 52-53 week fiscal year ending on the last Saturday in
the month of February.  Fiscal 1998 was a 53-week period while fiscal
1997 and fiscal 1996 were 52-week periods.

Consolidation:  The consolidated financial statements include the
accounts of the Company and its subsidiaries.  All significant
intercompany accounts and transactions have been eliminated in
consolidation.

Cash equivalents: For financial reporting purposes, cash equivalents
consist of all highly liquid investments purchased with original
maturities of three months or less.  At February 28, 1998, such cash
equivalents consist principally of corporate commercial paper.

Short-term investments:  The Company classifies all of its short-term
investments as available-for-sale securities.  Such short-term
investments consist primarily of United States government and federal
agency securities, corporate commercial paper and corporate bonds which
are stated at market value, with unrealized gains and losses on such
securities reflected, net of tax, as other comprehensive income in
shareholders' equity.  Realized gains and losses on short-term
investments are included in earnings and are derived using the specific
identification method for determining the cost of securities.  It is the
Company's intent to maintain a liquid portfolio to take advantage of
investment opportunities; therefore, all securities are considered to be
available-for-sale and are classified as current assets.  

Inventories:  Inventories are stated at the lower of cost or market.  The
last-in, first-out (LIFO) method is used for determining the cost of
grocery, drug, cosmetic and non-food inventories, while the first-in,
first-out (FIFO) method is used for determining the cost of other
inventories, primarily perishable items.  Approximately 83% of the
Company's inventories are valued using the LIFO method.








                                    29<PAGE>
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Property, plant and equipment:  Property, plant and equipment are stated
at cost.  Depreciation for financial reporting purposes is provided on
the straight-line method over the estimated useful lives of the assets
which results in average depreciation rates of 3%, 4% and 8% for
buildings and improvements, leasehold improvements and furniture and
equipment, respectively.  Accelerated methods and lives are used for
income tax reporting purposes. 

Property under capital leases:  Property under capital leases, which
consists principally of real property used in the Company's operations,
is recorded at the lower of the present value of the minimum lease
payments or the fair market value of the leased property at the inception
of the lease.  Amortization of the leased property is computed using the
straight-line method over the term of the lease.

Real estate held for future development:  Real estate held for future
development is stated at cost.

Long-lived assets: The recoverability of long-lived assets is assessed
annually or whenever adverse events and changes in circumstances indicate
that previously anticipated undiscounted cash flows warrant reassessment. 

Accrued insurance claims:  The Company maintains insurance coverage with
respect to general liability, automobile and workers' compensation risks
under contractual arrangements, subject to specified limitations.  The
costs associated with such risks are subject to adjustment based upon the
Company's ultimate claim experience. 

Income taxes: The provision for income taxes is determined using the
asset and liability approach.  Under this approach, deferred income taxes
represent the expected future tax consequences of temporary differences
between the carrying amounts and tax bases of assets and liabilities.

Pre-opening costs:  Costs associated with the opening of new stores are
expensed as incurred.

Buying and promotional allowances:  Allowances and credits received from
vendors in connection with the Company's buying and merchandising
activities are recognized as earned.
















                                    30<PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Stock-based compensation:  The Company accounts for stock-based
compensation using the intrinsic value method prescribed in  Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees".  The Company has provided pro forma disclosures which reflect
the fair value based method of accounting for stock options granted in
1998, 1997 and 1996 as required by the Financial Accounting Standards
Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 123,
"Accounting for Stock-Based Compensation" (Note 7).

Use of estimates and assumptions:  The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. 
Actual results could differ from those estimates and assumptions.

Earnings per share: On February 28, 1998, the Company adopted SFAS No.
128, "Earnings per Share" and restated all prior-period earnings per
share data.  Basic earnings per share excludes the dilutive effect of
outstanding stock options and is computed by dividing net income by the
weighted average common shares outstanding of 60,056,932, 59,778,489, and
59,360,234 in fiscal years 1998, 1997, and 1996.  Diluted earnings per
share reflects the potential dilution that could occur if outstanding
stock options were exercised. It is computed by increasing the
denominator of the basic calculation by potential dilutive common shares,
determined using the treasury stock method, of 60,411,000, 60,427,000,
and 59,735,438 in fiscal years 1998, 1997, and 1996.

Comprehensive income: On February 28, 1998, the Company adopted SFAS No.
130, "Reporting Comprehensive Income." Total comprehensive income is
reported in the consolidated statements of changes in stockholders'
equity and includes net income and unrealized security holding gains and
losses, net of taxes.   

Business segments:  Substantially all of the Company's assets, sales and
operating income are employed in or derived from a combination of retail
food and drug business in the United States.  In June 1997, the FASB
issued SFAS No. 131, "Disclosures about Segments of an Enterprise and
Related Information," which establishes annual and interim reporting
standards for an enterprise's operating segments and related disclosures
about its products, services, geographic areas and major customers.  This
Statement is effective for fiscal years beginning after December 15, 1997
and will not impact the Company's consolidated financial position,
results of operations or cash flows, and any effects, while not yet
determined by the Company, will be limited to the presentation of its
disclosures.








                                    31<PAGE>
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fair value of financial instruments:  The carrying amount of the
Company's cash and cash equivalents, receivables, accounts payable and
accrued expenses approximates fair value because of the short maturity of
those instruments.  The Company derives the fair value of its short-term
investments based on quoted market prices.  The Company estimates the
fair value of its notes and mortgages by discounting the required future
cash flows under such notes and mortgages using borrowing rates at which
similar types of borrowing arrangements could be currently obtained by
the Company.

2.  SHORT-TERM INVESTMENTS

Short-term investments consist of the following:
                                           Unrealized Holding
  As of February 28, 1998:      Cost         (Losses) Gains    Fair Value
Government obligations       $ 30,719           $  (456)         $ 30,263
Corporate obligations          88,094                56            88,150
Other                           1,860               -               1,860
                             $120,673           $  (400)         $120,273

  As of February 22, 1997:
Government obligations       $136,590            $ (742)         $135,848
Corporate obligations            -                  -                -   
Other                           1,248               -               1,248
                             $137,838           $  (742)         $137,096

  As of February 24, 1996:
Government obligations       $133,941            $ (177)         $133,764
Corporate obligations            -                  -                -   
Other                             913               -                 913
                             $134,854           $  (177)         $134,677

Maturities of short-term investments at February 28, 1998 were as
follows:
                                             Cost       Fair Value
Due within one year                       $ 93,198       $ 93,516
Due after one year through five years       27,475         26,757
                                          $120,673       $120,273

3. INVENTORIES

If the FIFO method had been used, inventories would have been $93,233,
$90,008, and $85,713 higher at the end of 1998, 1997 and 1996,
respectively.  Net income would have been higher by $1,964 ($.03 per
share-basic) in 1998, $2,616 ($.04 per share-basic) in 1997, and $2,889
($.05 per share-basic) in 1996.  The replacement cost of inventories
valued at LIFO approximates FIFO cost.








                                    32<PAGE>
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4.  NON-RECURRING GAIN

The Company realized a $23,674 non-recurring gain during the fourth
quarter of fiscal 1998.  This non-recurring gain was realized as a
reduction of overall employee benefit costs, and accordingly, has been
presented as a reduction in selling, general and administrative expenses
in the accompanying financial statements.  Management cannot predict the
likelihood that such reductions will occur in the future.

5. NOTES AND MORTGAGES

Notes and mortgages outstanding at February 28, 1998, February 22, 1997
and February 24, 1996 were as follows:
                                  1998      1997       1996
Notes payable to insurance
 company                        $ 17,400  $ 33,560  $ 39,720
Mortgage notes payable            11,639    12,300    13,085
                                  29,039    45,860    52,805
Less current portion               1,905     6,821     6,846 

                                $ 27,134  $ 39,039  $ 45,959

The insurance company notes are subject to covenants, the more
significant of which restrict the payment of dividends, the creation of
long-term debt and the purchase of Company common stock.  At February 28,
1998, approximately $90,553 of consolidated retained earnings were free
of dividend and stock purchase restrictions.  The average interest rate
on the insurance company notes is 9.80%.

Mortgage notes are collateralized by real estate which cost $15,562.  The
average interest rate on such notes is 11.35%.

Net interest expense was as follows:
                                    1998       1997      1996
Notes and mortgages             $   4,356  $   5,045 $   6,237
Lease obligations                  17,094     16,597    16,140  
Capitalized interest              ( 1,677)   ( 1,731)  ( 1,138)
 
                                   19,773     19,911    21,239
Less interest income              ( 9,944)   (13,132)  (14,004)

                                $   9,829  $   6,779 $   7,235 

Annual maturities of notes and mortgages for the next five years are as
follows:  1999, $1,905; 2000, $2,000; 2001, $2,108; 2002, $2,230; and
2003, $20,796.
                                            
The estimated fair value of notes and mortgages is approximately $31,234,
$49,200 and $66,000 at February 28, 1998, February 22, 1997, and February
24, 1996, respectively.






                                    33
<PAGE>

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. INCOME TAXES

The provision (benefit) for income taxes consists of:
                                   1998      1997       1996
Current
  Federal                        $30,578   $44,446    $64,536
  State                            6,389     8,728     12,937
                                  36,967    53,174     77,473
Deferred
  Federal                          7,438     1,466     (9,822)
  State                            1,557       311     (1,977)

                                   8,995     1,777    (11,799)

                                 $45,962   $54,951    $65,674

Deferred income tax assets (liabilities) are comprised of the following:

                                  February 28, February 22, February 24,
                                      1998         1997         1996 
 Current deferred income tax assets:
  Employee benefits                 $ 13,376    $ 13,233     $ 13,930
  Promotional allowances               4,796       4,461        4,734
  Capitalization of inventory            588       4,356        3,235
  Other                                4,309         529        2,104
                                      23,069      22,579       24,003

 Noncurrent deferred income tax assets: 
  Capital leases                      18,113      17,414       16,658
  Accrued insurance claims            19,014      18,429       21,274
  Pension payments                     8,151       6,904        5,843
  Capitalization of overhead           4,181       4,276        3,812
  Promotional allowances               2,925       6,350        8,396
  Other                                  831       1,159          485
                                      53,215      54,532       56,468
   Total deferred tax assets          76,284      77,111       80,471

 Noncurrent deferred income tax liabilities:
  Depreciation                       (70,319)    (62,016)     (63,820)
  Acquisition of shopping
    center for stock                  (5,191)     (5,191)      (5,191)
   Total deferred tax liabilities    (75,510)    (67,207)     (69,011)

 Net deferred tax asset             $    774     $ 9,904     $ 11,460 












                                    34          <PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. INCOME TAXES (continued)

The following table reconciles the statutory federal income tax rate to
the Company's effective income tax rate.
                                               1998      1997      1996 
Statutory federal income tax rate              35.0%     35.0%     35.0%
State income taxes, net of
 federal tax benefit                            4.4       4.4       4.2 
Other                                          (0.2)     (0.3)     (0.1)

Effective income tax rate                      39.2%     39.1%     39.1%  
 
7.  COMMITMENTS AND CONTINGENCIES

Leases:  The Company leases certain of its warehouse facilities and a
substantial number of its retail store properties under noncancelable
lease agreements for periods ranging from 20 to 30 years.  These leases
generally contain optional renewal provisions for one or more periods of
five years each.  Substantially all leases covering retail store
properties provide for additional rentals based on sales.  Most leases
also require the payment of taxes, insurance and maintenance costs.  Data
processing and certain other equipment leases are for terms of two to
five years.

Future minimum lease payments under capital leases and noncancelable
operating leases as of February 28, 1998 are as follows:

                                          Capital          Operating
                                           leases            leases
1999                                     $ 22,675          $ 36,966
2000                                       22,500            35,968
2001                                       22,394            34,531
2002                                       22,223            33,726
2003                                       21,738            33,233
Later years                               284,366           527,295

Total minimum lease payments              395,896          $701,719 
Less executory costs                          158 
                                                 
Net minimum lease payments                395,738 
Less imputed interest                     233,076 

Present value of net                     
 minimum lease payments                   162,662         
Less current portion                        6,621 

Long-term obligations under
 capital leases                          $156,041 









                                    35<PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

7.  COMMITMENTS AND CONTINGENCIES (continued)

Minimum lease payments for capital leases have not been reduced by
minimum sublease rentals of $5,080 receivable in the future under
noncancelable subleases.

Net rental expense associated with leases consists of the
 following:
                               1998          1997          1996
Operating leases
   Minimum                   $41,418       $32,829       $22,369
   Contingent                  8,586         7,900         9,142
Contingent rentals under
   capital leases              2,977         3,105         3,416
Gross rental expense          52,981        43,834        34,927
Sublease income               (2,649)       (2,458)       (2,303)

Net rental expense           $50,332       $41,376       $32,624

The Company also leases certain retail space to others under
noncancelable operating lease agreements.  Rental income from owned
properties was $13,883 in 1998, $11,450 in 1997, and $10,395 in 1996. 
Total future minimum rentals from owned properties as of February 28,
1998 were approximately $83,438.

Contingencies:  From time to time, the Company is involved in legal
proceedings that have arisen in the ordinary course of business. 
Currently, there are claims alleging acts of employment discrimination. 
Management, after consulting with legal counsel, is of the opinion that
the outcome of such matters will not have a material impact on the
consolidated financial position of the Company.

8.  COMMON STOCK AND EMPLOYEE INCENTIVE PLANS

Shares authorized:  Common stock, $1 par value, authorized and
outstanding at year end is as follows:
                                               Outstanding              
    Class             Authorized      1998          1997         1996
"A" non-voting        75,000,000    59,905,993    59,721,156   59,303,838
"AC" voting              125,000       125,000       125,000      125,000
"AL" voting              125,000       125,000       125,000      125,000

                      75,250,000    60,155,993    59,971,156   59,553,838

Class "A" common stock has all of the rights and privileges pertaining to
other classes of common stock except the right to vote. No dividends may
be declared on any class of common stock without declaring at least an
equal dividend on Class "A" stock. However, dividends may be declared on
Class "A" stock without declaring dividends on any other class of common
stock.







                                    36<PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

8.  COMMON STOCK AND EMPLOYEE INCENTIVE PLANS (continued)

The Company's Board of Directors has authorized the future repurchase of
up to 2,325,000 Class "A" common shares.  The Company has purchased and
accumulated treasury stock in order to accommodate a portion of the needs
for registered common stock which may arise in connection with the
exercise of stock options and the award of shares under the stock bonus
plan.

Stock options:  The Company has established incentive compensation plans
under which it is authorized to grant non-qualified stock options to
approximately 1,650 employees.  Options to purchase the Company's Class
"A" common stock are exercisable at a price equal to the market value of
the stock at the date of grant and become exercisable over one to five
years following the grant.  All options expire ten years after date of
grant.

The Company had historically granted stock appreciation rights (SARs) in
tandem with options.  During the year ended February 24, 1990, the
Company began to grant non-qualified options without tandem SARs.  No
options have been granted with tandem SARs since July 1989.

Upon exercise of a SAR the holder is entitled to receive cash (or
equivalent value in stock) equal to the amount by which the market value
of the Company's Class "A" common stock on the exercise date exceeds the
exercise price of the related stock options.  As SARs are exercised the
corresponding options are canceled and as options are exercised the
corresponding SARs are canceled.  





























                                    37<PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

8.  COMMON STOCK AND EMPLOYEE INCENTIVE PLANS (continued)

Option and SAR activity is as follows:
                                Number of Shares      Average Option
                               Options      SARs          Price

February 25, 1995
Outstanding                  3,124,035     419,025        $23.56

   1996 Activity
Granted                        732,350         -           27.75
Options exercised             (281,299)    (49,004)        22.14
SARs exercised                (179,057)   (179,057)        16.69
Canceled                       (72,436)     (5,216)        24.50
                                                    
February 24, 1996           
Outstanding                  3,323,593     185,748         24.94

   1997 Activity
Granted                        573,400         -           33.40
Options exercised             (503,875)     (9,679)        24.42
SARs exercised                 (78,124)    (78,124)        18.84
Canceled                      (139,171)     (2,951)        26.08
                                                    
February 22, 1997           
Outstanding                  3,175,823      94,994         26.71

   1998 Activity
Granted                        754,400         -           33.04
Options exercised             (362,634)     (8,294)        24.63
SARs exercised                 (46,565)    (46,565)        19.65
Canceled                      (133,480)       (900)        31.32
                                                    
February 28, 1998           
Outstanding                  3,387,544      39,235         28.25

Exercisable                  1,650,524      39,235        $26.54     
Available for future grants    559,420       NONE           -



















                                    38<PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

8.  COMMON STOCK AND EMPLOYEE INCENTIVE PLANS (continued)

The following table summarizes information about options outstanding at
February 28, 1998 for the plans:

                      Options Outstanding           Options Exercisable  
                             Weighted - Average         
                              Remaining                          Weighted
                   Number    Contractual             Number       Average
   Range of     Outstanding   Life      Exercise   Exercisable   Exercise
Exercise Prices  At 2/28/98  (in years)  Price      At 2/28/98     Price
 $17.35 - 19.81      22,445        3.6   18.86          22,445     18.86
  20.00 - 24.94   1,028,539        5.0   22.70         730,039     22.71
  25.00 - 29.94     908,040        4.7   27.22         665,800     27.28
  30.44 - 35.63   1,428,520        8.7   33.06         232,240     32.85
                  3,387,544                          1,650,524 

The weighted-average fair value of options granted during 1998 and 1997
was $8.13 and $8.03, respectively.  The fair value of each option grant
is estimated on the date of grant using the Black-Scholes model.  The
following weighted-average assumptions are included in the Company's fair
value calculations:

                                   1998               1997
Expected life (years)                 6                  6
Risk-free interest rate             6.0%               6.2%
Volatility                         20.0%              20.9%
Dividend yield                      2.5%               2.8%

Under the above models, the total value of stock options granted during
1998, 1997 and 1996 was approximately $5,528, $4,608 and $5,175,
respectively, which would be amortized over the five year option vesting
period.  Had the Company determined compensation costs for these plans in
accordance with SFAS No. 123, the Company's pro forma net income would
have decreased by $1,461, $938 and $421 in 1998, 1997 and 1996,
respectively.  Pro forma basic earnings per share would be $1.16 in 1998,
$1.41 in 1997 and $1.71 in 1996.  Pro forma diluted earnings per share
would be $1.15 in 1998, $1.40 in 1997 and $1.70 in 1996.  The SFAS No.
123 method of accounting does not apply to options granted prior to 1996,
and accordingly, the resulting pro forma compensation cost is not
representative of that to be expected in the future.

Stock awards:  The Company has also established an executive stock bonus
plan under which certain officers and managerial employees may be awarded
shares of Class "A" common stock.  Charges to income arising from stock
awards (including applicable withholding taxes) were $1,000 in 1998,
$1,000 in 1997 and $1,000 in 1996.










                                    39 <PAGE>
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9.  EMPLOYEE BENEFIT PLANS

Pension and savings plans:  The Company maintains a qualified defined
benefit pension plan which covers substantially all non-union employees. 
Plan benefits are based on the participants' years of service and average
annual earnings.  The Company's policy is to fund the amount expensed for
accounting purposes subject to it being deductible for income tax
purposes.  The assets of the qualified defined benefit pension plan at
February 28, 1998 are comprised of approximately 70% equities and
approximately 30% fixed income investments and cash equivalents.          
 
Supplementary defined benefit pension plans covering certain officers are
also maintained.  These plans are unfunded and non-qualified.  The
pension liability associated with the plans is accrued using the same
actuarial methods and assumptions as those used for the Company's
qualified plan.

The net periodic pension cost for these plans includes the following
components:

                              1998         1997          1996
Service cost
  Qualified plan           $ 5,166       $ 4,908      $ 4,158
  Supplemental plans           214           166          151
Interest cost
  Qualified plan             9,155         8,224        8,339
  Supplemental plans           498           336          337
Actual return on assets    (21,453)      (15,576)     (21,228)
Net amortization and deferral
  Qualified plan             9,440         4,617       12,412 
  Supplemental plans           268           212          189
Net pension cost          $  3,288       $ 2,887      $ 4,358

























                                    40<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9.  EMPLOYEE BENEFIT PLANS (continued)

The funded status and amounts recognized in the consolidated balance
sheets as of February 28, 1998, February 22, 1997 and February 24, 1996
are as follows:
                                                      Qualified plan
                                             1998      1997       1996  
Actuarial present value of benefit obligations
Vested benefit obligation                  $ 96,623  $ 81,576   $ 80,908

Accumulated benefit obligation             $107,529  $ 91,333   $ 90,570

Projected benefit obligation               $135,784  $116,301   $113,415

Plan assets at fair value                  (135,060) (117,980)  (105,956)
Projected benefit obligation (less than) 
 in excess of plan assets                       724    (1,679)     7,459 
Unrecognized net gain (loss)                 12,774    11,153     (1,167)
Unrecognized prior service cost              (2,222)   (1,759)    (1,927)
Unrecognized transition asset                 4,848     6,100      7,351
Pension liability recognized in the
  consolidated balance sheets              $ 16,124   $13,815    $11,716


                                                  Supplemental plans
                                              1998     1997      1996  
Actuarial present value of benefit obligations
Vested benefit obligation                   $ 5,684  $ 3,066   $ 2,805

Accumulated benefit obligation              $ 5,684  $ 3,066   $ 2,805

Projected benefit obligation                $ 7,514  $ 4,784   $ 4,420


Plan assets at fair value                        -        -         - 
  
Projected benefit obligation in excess of
 plan assets                                  7,514    4,784     4,420 
Unrecognized net gain                        (2,552)     673       681 
Unrecognized prior service cost              (1,129)  (1,225)   (1,354)
Unrecognized transition obligation             (409)    (512)     (614) 
Additional Liability                          1,130                    
Pension liability recognized in the
 consolidated  balance sheets               $ 4,554  $ 3,720   $ 3,133












                                    41<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9.  EMPLOYEE BENEFIT PLANS (continued)
Actuarial assumptions used were as follows:
                                         1998        1997       1996

Discount rate                            7.0%        7.5%       7.5%
Rate of increase in 
 compensation levels                     3.5%        4.0%       4.0%
Expected rate of return
 on plan assets                          9.0%        9.5%       9.5%


Payments are made to union-sponsored, multi-employer pension plans in
accordance with negotiated labor contracts.  Charges to income arising
from contributions required under the labor contracts aggregated $19,220,
$18,731 and $19,051 in 1998, 1997 and 1996, respectively.

The Company sponsors a tax deferred savings plan whereby eligible
employees may elect annually to contribute up to 20% of their
compensation, subject to statutory limitations.  A non-qualified
supplemental tax deferred savings plan is also maintained for certain
employees.  The Company matches a portion of employee contributions. 
Charges to income representing the Company's contributions to the plans
were $4,849, $4,516, and $4,259 in 1998, 1997 and 1996, respectively.

Other Benefits:

The Company does not provide any significant post-retirement or post-
employment benefits to administrative employees, and post-retirement and
post-employment benefits for union employees are covered by union-
sponsored, multi-employer plans. 

10.  CASH FLOWS

Net cash flows from operating activities include cash payments for
interest and income taxes as follows:
 
                                     1998         1997         1996

Interest                           $20,324      $21,887      $22,758
Income taxes                        35,936       72,586       84,495

Non-cash investing and financing activities include capital leases of
$16,724, $6,900 and $6,212 in 1998, 1997 and 1996, respectively.













                                    42<PAGE>

SUPPLEMENTARY FINANCIAL INFORMATION

(a) Selected Quarterly Financial Data (unaudited)

Thousands of Dollars, Except Per Share
                                                            
                                 Gross       Net     Earnings Per Share
Fiscal Year         Sales        Profit     Income    Basic    Diluted   
   1998
1st 12 weeks    $   928,936  $   265,205  $  14,912  $  .25    $  .25
2nd 12 weeks        934,782      255,546      7,640     .13       .13
3rd 12 weeks        943,931      268,351     12,228     .21       .20
Last 17 weeks     1,422,991      397,553     36,410     .60       .60
Total           $ 4,230,640  $ 1,186,655  $  71,190  $ 1.19    $ 1.18 

   1997
1st 12 weeks    $   895,627  $   271,144  $  25,783  $  .43    $  .43
2nd 12 weeks        874,424      269,807     23,172     .39       .39
3rd 12 weeks        896,977      268,743     18,860     .32       .31
Last 16 weeks     1,213,931      336,735     17,689     .29       .29
                $ 3,880,959  $ 1,146,429  $  85,504  $ 1.43    $ 1.42 

   1996
1st 12 weeks    $   869,235  $   257,626  $  22,106  $  .37    $  .37
2nd 12 weeks        856,515      254,057     17,765     .30       .30
3rd 12 weeks        870,666      258,836     17,420     .30       .29
Last 16 weeks     1,264,163      382,378     44,862     .75       .75
                $ 3,860,579  $ 1,152,897  $ 102,153  $ 1.72    $ 1.71






























                                    43<PAGE>
ITEM 9.       CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
              ACCOUNTING AND FINANCIAL DISCLOSURE

              None.

                                PART III

ITEM 10.      DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

              (a)     Identification of Directors

                               Title of All Positions   Year First
Name                    Age    Held with the Company    Elected Director


Pete L. Manos            61     Chairman of the Board,        1995
                                President, and Chief
                                Executive Officer

Alvin Dobbin*            66     Executive Vice President,     1996
                                Chief Operating Officer,
                                and Director

Constance M. Unseld      50     Director                      1993

Peter F. O'Malley        59     Director                      1993

David J. Sainsbury       57     Director                      1994

Harry G. Beckner         69     Director                      1994

Rosemary P. Thorne       46     Director                      1996

Raymond A. Mason         61     Director                      1996

David Bremner**          40     Director                      1997
 
The present term of each of the above Directors will expire at the
Annual Meeting of Voting Shareholders currently scheduled for
September 10, 1998.

Millard F. West, Jr. and Morton H. Wilner retired as active directors on
September 6, 1990, on which date they were elected Directors Emeritus. 
Messrs. West and Wilner served as Board members 26 and 24 years,
respectively.

*Although Mr. Dobbin retired from his corporate positions effective
February 28, 1998, he remains a Director of the Company.

**Mr. Bremner replaced Michael W. Broomfield as a Director of the
Company.







                                    44<PAGE>
              (b)     Identification of Executive Officers
                               
                               Year First Elected 
Name and Position       Age   Officer   Present Office      
Pete L. Manos            61    1977     1992 (President)
  Chairman of the Board,                1995 (Chief Executive Officer)
  President, & Chief Executive          1996 (Chairman of the Board)
  Officer

Alvin Dobbin*            66    1970     1996 (Executive Vice President)
  Executive Vice President-             1996 (Chief Operating Officer)
  and Chief Operating Officer 

Michael W. Broomfield**  55    1998     1998 
  Chief Operating Officer

David W. Rutstein        53    1978     1981 (Sr. V.P.- General Counsel)
  Senior Vice President-                1996 (Chief Admin. Officer)
  General Counsel, Chief                1996 (Secretary)
  Administrative Officer,
  and Secretary

Mark H. Berey            46    1997     1997 (Sr. V.P. - Finance)
  Senior Vice President-                1997 (Treasurer)
  Finance, Treasurer,                   1997 (Chief Financial Officer)
  Chief Financial Officer

M. Davis Herriman        59    1985     1996 (Sr. V.P. - Grocery, Bakery
  Senior Vice President-                      and Pharmacy Operations
  Grocery, Bakery and                   1998 (Chief Merchandising  
  Pharmacy Operations and                     Officer)
  Chief Merchandising Officer 

Roger D. Olson           53    1978     1988
  Senior Vice President-
  Labor Relations and
  Personnel

Robert W. Schoening      51    1985     1988
  Senior Vice President-
  Information Systems

Samuel E. Thurston       54    1977     1988
  Senior Vice President-
  Distribution

John P. Mason            45    1996     1998
  Senior Vice President-
  Perishable Operations

* Mr. Dobbin retired from these positions effective February 28, 1998. 
Mr. Broomfield was elected to the position of Chief Operating Officer
effective March 9, 1998.

** Mr. Broomfield was elected to the position of Chief Operating Officer
effective March 9, 1998.


                                    45<PAGE>

The present term of each of the above Executive Officers will expire at
the first meeting of the Board of Directors subsequent to the Annual
Meeting of Voting Shareholders currently scheduled for September 10,
1998.

      (c)     Identification of Certain Significant Employees
              Not applicable.

      (d)     Family Relationships
              Not applicable.

      (e)     Business Experience

              Each of the above-named executive officers of the Company
has been employed by the Company for a period of time in excess of five
years except for Messrs. Broomfield, Berey, and Green.  Mr. Broomfield
served as Managing Director of Saveacentre (a subsidiary of J Sainsbury)
from 1992-1996 when he was assigned by J Sainsbury to work in the
President's office at Giant where he stayed until he assumed his
position as Chief Operating Officer of Giant on March 9, 1998.  Mr.
Berey served as President and Chief Executive Officer of Sutton Place
Gourmet since June of 1989, and in 1995 became that company's Chairman
of the Board.  Mr. Berey stepped down from that position in July of 1996
and took personal time off before assuming his position with Giant in
August 1997.  Mr. Green served as the Vice President of Construction,
Engineering, and Purchasing of Pathmark Stores since 1992.  Messrs.
Broomfield, Berey, and Green each have more than five years experience
in the food-retail industry.  The positions of each of the officers with
the Company are set forth above in subsection (b), and the duties of
each have been encompassed within the framework of their respective
titles since first becoming an officer of the Company.

              The principal occupation, employment, and business
























                                    46<PAGE>
experience during the past five years of each of the Directors and
Directors Emeritus of the Company is set forth below:

              Pete L. Manos - see subsection (b) above.

              Alvin Dobbin - see subsection (b) above.


              Constance M. Unseld is the founder and operator of the
Unselds' School, a state accredited, independent school in Baltimore,
Maryland.  She also serves as a member of the Board of Regents of the
University of Maryland system.

              Peter F. O'Malley is the founder and current counsel to
the law firm of O'Malley, Miles, Nylen & Gilmore of Prince George's
County, Maryland.  He currently serves on the Boards of Directors of
Potomac Electric Power Company, Potomac Capital Investments and Legg
Mason, Inc.  The firm of O'Malley, Miles, Nylen & Gilmore is one of a
number of firms which provides legal services to the Company.

              David J. Sainsbury is Chairman of J Sainsbury plc where he
has worked since 1963.  Mr. Sainsbury is a great-grandson of the founder
of J Sainsbury plc.

              Harry G. Beckner was formerly President of Jewel Food
Stores of Chicago, Illinois and Chief Operating Officer of the H.E. Butt
(H.E.B.) grocery company of San Antonio, Texas.  He serves on the Boards
of Directors of H.E.B. and Shaw's Supermarkets Inc.

              Rosemary P. Thorne serves as Group Finance Director of J
Sainsbury plc.  Miss Thorne is a non-executive director of the Board of
the Department for Education and Employment.  She is also a member of
the Financial Reporting Review Panel, a board member of the Prince's
Youth Business Trust and an active member of the prestigious Hundred
Group.

              Raymond A. Mason is the Chairman, President and Chief
Executive Officer of Legg Mason, Inc.  He has served as chairman of the
Securities Industry Association, The National Association of Security
Dealers and chairman of the Regional Firms Committee of the New York
Stock Exchange.

              David Bremner is Deputy Group Chief Executive for 
J Sainsbury plc.  He is also Chairman of Homebase (Sainsbury's chain of
home improvement and garden centers) and Chairman of Shaw's Supermarkets
Inc.

              Millard F. West, Jr., a Director Emeritus of the Company,
is a former Vice-President of the firm of Prudential Securities, Inc.
(Members New York Stock Exchange) and is a former Director of Dewey
Electronics Corporation.

              Morton H. Wilner, a Director Emeritus of the Company, is
General Counsel Emeritus of the Armed Forces Benefit Association and
Vice Chairman of A.F.B.A. Industrial Bank.  He is also a Trustee



                                    47  <PAGE>
Emeritus, for life, of the University of Pennsylvania.

              (f)     Involvement in Certain Legal Proceedings

              No Director, Director Emeritus or Executive Officer was
involved in any event during the past five years which would be
responsive to this question.


              (g)     Promoters and Control Persons

              Not applicable.

              (h)     Section 16(a) Beneficial Ownership Reporting
                      Compliance

              Section 16(a) of the Securities Exchange Act of 1934
requires the Company's directors and executive officers, and persons who
own more than ten percent of a registered class of the Company's equity
securities, to file with the Securities and Exchange Commission ("SEC")
and the American Stock Exchange initial reports of ownership and reports
of changes in ownership of common stock and other equity securities of
the Company within prescribed time periods.  Officers, directors, and
greater than ten-percent shareholders are required by SEC regulation to
furnish the Company with copies of all Section 16(a) forms they file.

              To the Company's knowledge, based solely on a review of
the copies of such reports furnished to the Company and written
representations that no other reports were required, during the fiscal
year ended February 28, 1998, except for the report described below, all
Section 16(a) filing requirements applicable to officers, directors, and
greater than ten-percent beneficial owners were met on a timely basis.

              George W. Hannis, Jr. inadvertently failed to file a Form
4 with respect to his exercise of stock options upon his retirement from
the Company.  The error was corrected by the filing of SEC Form 5 in
April 1998.





















                                    48<PAGE>
ITEM 11.     EXECUTIVE COMPENSATION

     The following tables and narrative text discuss the compensation
paid in Fiscal Year 1998 and the two prior fiscal years to the Company's
Chief Executive Officer and the Company's four other most highly-
compensated executive officers.


                      Summary Compensation Table

                      Annual Compensation (1)   

                                                 Other  
Name and                                         Annual 
Principal            Fiscal                      Compen-
Position             Year     Salary    Bonus    sation(1)

Pete L. Manos        1998     $579,519  $150,000 $5,772
Chairman of the      1997     $520,673  $260,000 $6,002
  Board, President   1996     $327,028  $260,000 $6,134
  and CEO

Alvin Dobbin         1998     $336,985  $ 93,600 $5,772
  Exec. V.P.         1997     $290,141  $160,000 $6,002
  & COO              1996     $254,431  $150,378 $6,134

David W. Rutstein    1998     $291,571  $ 96,825 $5,772
  Sr. V.P.           1997     $264,654  $160,000 $6,002
  Gen. Counsel, CAO  1996     $252,720  $149,363 $6,134
  & Secretary

M. Davis Herriman    1998     $252,739  $ 82,200 $5,772
  Sr. V.P. Grocery,  1997     $217,657  $120,000 $6,002
  Bakery & Pharmacy  1996     $189,375  $118,807 $6,134 
  Operations and 
  Chief Merchandising
  Officer

Robert W. Schoening  1998     $264,291  $ 57,728 $5,772
  Sr. V.P.           1997     $187,488  $ 98,681 $6,002
  Information        1996     $179,006  $ 98,681 $6,134
  Systems

     (1)  Aggregate value of perquisites does not exceed the lesser of
$50,000 or 10% of the total amount of annual salary and bonus.  Includes
cash payments for income taxes to each named officer on the value of the
restricted shares and the tax payment itself pursuant to the Non-
Qualified Executive Stock Bonus Plan II.










                                    49<PAGE>
                           Long Term Compensation       

                                        Options/         All Other
Name and                      Restricted   SAR            Compensa-
Principal            Fiscal   Stock     Awards(#)  LTIP    tion
Position             Year     Awards(3)   (4)     Payouts (5)(6)    

Pete L. Manos        1998     $9,027     32,500      0     $31,065
  Chairman of the    1997     $9,388          0*     0     $36,320
  Board, President   1996     $9,596    102,500      0     $24,318
  and CEO

Alvin Dobbin         1998     $9,027     17,500      0     $18,397
  Exec. V.P. &       1997     $9,388     14,500      0     $25,415
  COO                1996     $9,596      9,500      0     $23,085

David W. Rutstein    1998     $9,027     17,500      0     $16,725
  Sr. V.P.           1997     $9,388      9,500      0     $20,273
  Gen. Counsel, CAO  1996     $9,596      9,500      0     $18,855
  & Secretary

M. Davis Herriman    1998     $9,027      9,500      0     $17,473   
  Sr. V.P. Grocery,  1997     $9,388     12,500      0     $16,041
  Bakery & Pharmacy  1996     $9,596      7,500      0     $14,170
  Operations and 
  Chief Merchandising
  Officer

Robert W. Schoening  1998     $9,027     17,500      0     $15,168
  Sr. V.P.           1997     $9,388      9,500      0     $15,130
  Information        1996     $9,596      9,500      0     $14,390
  Systems
 
     (3) Under this plan, the aggregate stock holdings of this group
were 17,340.60 shares and the share value was $36.312 as of February 28,
1998.  Dividends are paid on the stock held under this plan. 

     Under this plan, the Company makes an annual contribution not
exceeding the greater of (i) $1,000,000 or (ii) six-tenths of one
percent (0.60%) of the pre-tax earnings of the Company.  The Company's
cash contributions are used to purchase shares of Class A non-voting
common stock.  

     Distributions of those shares will be made to those participants
who meet any of the following conditions: (1) ten years' participation
in the Plan; (2) retirement after attainment of age 62; (3) abolition of
the participant's job; (4) total and complete disability or (5) death.

     (4)  All options granted to participants pursuant to these stock
option plans are issued at 100% of fair market value on the date issued
and may be exercised, on a graduated basis, after the later of one year
from the date of grant or two years' continued employment.  All options
terminate 10 years from their date of issuance.

*Incorrectly reported as 2,500 in the 1997 10K.



                                    50 <PAGE>

     The Company receives no cash consideration for granting options. 
In order to acquire shares, the optionee must pay the full purchase
price of the shares being exercised, plus appropriate withholding taxes. 
Optionees are not permitted to receive cash for any excess of market
value over option price.

    (5)  Includes Company matching contributions under Company's
Qualified Tax-Deferred Savings Plan ("Qualified Plan") and the Company's
Non-Qualified Excess Benefits Savings Plan ("Non-Qualified Plan"). 

     Participants in the Qualified Plan and Non-Qualified Plan are
permitted to contribute portions of their compensation, subject to legal
limitations for the Qualified Plan and without legal limitations for the
Non-Qualified Plan, for which the Company contributes an amount in cash
equal to the participant's initial 3% pre-tax contribution.  In
addition, the Company provides supplemental contributions (in the form
of Giant Food Inc. Class A common stock for the Qualified Plan) and the
Non-Qualified Plan to match participants' contributions (partially or
totally) in excess of 3% of salary up to 6% of salary.  Such Company
contributions are limited to .4% of its pre-tax earnings.

     In Fiscal Year 1998 the Company made matching contributions under
the Qualified Plan as follows:  Mr. Manos $6,000, Mr. Dobbin $6,000, 
Mr. Rutstein $6,000, Mr. Herriman $6,000, and Mr. Schoening $6,000.  In
Fiscal Year 1998 the Company made matching contributions under the Non-
Qualified Plan as follows: Mr. Manos $25,065.65, Mr. Dobbin $12,396.93,
Mr. Rutstein $10,724.81, Mr. Herriman $7,797.68, and Mr. Schoening
$7,469.67.

     (6)  Includes premium payments under the Company's Split Dollar
Insurance Program in which participants are provided with permanent life
insurance owned by the Company.  The Company pays for premiums and will
recover amounts equal to its investment in the insurance policies at the
deaths of the participants.

     During Fiscal Year 1998 the Company made insurance premium payments
as follows:  Mr. Herriman $3,675 and Mr. Schoening $1,698.




















                                    51<PAGE>
                OPTION GRANTS IN LAST FISCAL YEAR (1)

                         Individual Grants        

                  Number of
                  Securities
                  Underlying     % of Total
                  Options/       Options         Exercise             
                  SARs           Granted to      of Base
                  Granted        Employees       Price        Expiration
Name               (2)           in FY 98          ($/Sh)        Date   

Pete L. Manos        2,500                        $32.88        03/03/07
                    30,000                        $33.56        06/09/07
                    32,500             4.31%


Alvin Dobbin         2,500                        $32.88        03/03/07
                    15,000                        $33.56        06/09/07
                    17,500             2.32%
      

David W. Rutstein    2,500                        $32.88        03/03/07
                    15,000                        $33.56        06/09/07
                    17,500             2.32%


M. Davis Herriman    2,500                        $32.88        03/03/07
                     7,000                        $33.56        06/09/07
                     9,500             1.26%

Robert W. Schoening  2,500                        $32.88        03/03/07
                    15,000                        $33.56        06/09/07
                    17,500             2.32%
                   
     (1)  No SARs were awarded in the 1998 Fiscal Year.

     (2)  Options granted under the 1989 Non-Qualified Stock Option Plan
have a term of up to ten years as determined by the Stock Option Plan
Committee ("Committee").  Options become exercisable after the later of
one year from date of grant or the completion of two years of continued
employment.  After such date, optioned shares are exercisable only to
the extent of one-fifth of the total number of optioned shares per year. 
After the fourth year, option grants are exercisable in full.  The
Committee may prescribe longer time periods and additional requirements
with respect to the exercise of an option and may terminate unexercised
options based on the performance of the employee.  The Company is
required to withhold income taxes from income realized by an employee on
the exercise of an option.  The Company will (i) reduce the amount of
stock issued to reflect the necessary withholding, (ii) withhold the
appropriate tax from other compensation due to the optionee, or (iii)
condition transfer of any stock to the employee on the payment to the
Company of the required taxes.





                                    52<PAGE>
                 Potential Realizable Value of Assumed
                 Rates of Stock Price Appreciation for
                 Option Term (10 Years)


                       0%                    5%                   10%    
                     Gain (3)          Gain (4) (5)         Gain (4) (5) 

Name               

Pete L. Manos             $0            $  51,695           $  131,006
                           0              633,171            1,604,580
                          $0            $ 684,866           $1,735,586
                           

Alvin Dobbin              $0            $  51,695            $ 131,006
                           0              316,586              802,290
                          $0            $ 368,281            $ 933,296


David W. Rutstein         $0            $  51,695            $ 131,006
                           0              316,586              802,290
                          $0            $ 368,281            $ 933,296

M. Davis Herriman         $0            $  51,695            $ 131,006
                           0              147,740              374,402
                          $0            $ 199,435            $ 505,408

Robert W. Schoening       $0            $  51,695            $ 131,006
                           0              316,586              802,290
                          $0            $ 368,281            $ 933,296
  
     (3)  As shown in this column, no gain to the named officers or all
optionees is possible without appreciation in the price of the Company's
stock, which will benefit all shareholders.

     (4)  The price of Class A common stock at the end of the ten-year
term of the option grant at a 5% annual appreciation would be $53.56 and
$54.67, and at a 10% annual appreciation would be $85.28 and $87.05. 
These appreciation rates are the result of calculations required by the
Securities and Exchange Commission's rules, and therefore are not
intended to forecast future appreciation, if any, in the stock price of
the Company.

     (5)  The gain is calculated from the exercise price of the options
listed above, $32.88 and $33.56 based on the grant date of the options. 
Option grants are at 100% of market value on the date of grant.











                                    53<PAGE>
         Aggregated Options/SAR Exercises in Last Fiscal Year
                and Fiscal Year End Option SAR/Values (1)

                                                  
                    Shares            SARs         Value   
                  Acquired on       Exerc'd       Realized 
Name              Exercise(#)         (#)           ($)    

Pete L. Manos            0                0              0

Alvin Dobbin             0                0              0
 
David W. Rutstein        0                0              0

M. Davis Herriman        0                0              0

Robert W. Schoening      0                0              0

                                           Value of         Value of
             Number of     Number of       Unexerc'd        Unexerc'd
             Unexerc'd     Unexerc'd       In-the-Money     In-the-Money
             Options/SARs  Options/SARs    Options/SARs     Options/SARs
             at FY-End     at FY-End       at FY-End($)     at FY-End($)
Name         Exercisable  Unexercisable    Exercisable     Unexercisable

Pete L. Manos     82,500       107,500       $ 670,276        $ 529,699

Alvin Dobbin      30,000        40,500       $ 315,157        $ 176,578

David W. Rutstein 29,000        36,500       $ 312,785        $ 195,709

M.Davis Herriman  26,000        28,500       $ 273,355        $ 153,981

Robert Schoening  26,500        36,500       $ 278,878        $ 195,709

     (1)  Value is before taxes.  The dollar values are computed by
determining the difference between the fair market value of the
underlying common stock and the exercise price at fiscal year end.

 


















                                    54       <PAGE>
PENSION TABLE

Pension Plan:

The Company maintains a tax-qualified defined benefit pension plan for
approximately 2,500 salaried employees.  The following table provides an
example of benefits at the normal retirement age of 65 payable as a life
annuity:
                                 Estimated Annual Benefits

                              Pension from Retirement Plan
          Highest Five        for Following Number of Years
          Year Average              of Credited Service*
          Earnings             10           20           30    

          $ 40,000          $  3,844    $  8,087     $ 12,731
            70,000             7,894      16,487       25,781
           100,000            11,944      24,887       38,831
           150,000            18,694      38,887       60,581
           200,000            25,444      52,887       82,331
           250,000            32,194      66,887      104,081
           300,000            38,944      80,887      125,801
           350,000            45,694      94,887      147,581
           400,000            52,444     108,887      169,331
           500,000            65,944     136,887      212,831
           600,000            79,444     164,887      256,331
           700,000            92,944     192,887      299,831
           800,000           106,444     220,887      343,331

A participant's annual pension payable to him/her as of his/her normal
retirement date will be equal to:

(i)     .85% of "final average earnings" plus .50% of that portion of
final average earnings in excess of "covered compensation" times number
of years of credited service not to exceed 15, plus

(ii)    1.05% of final average earnings plus .50% of that portion of
final average earnings in excess of "covered compensation" times number
of years of credited service over 15, not to exceed 15, plus

(iii)   .50% of final average earnings times years of credited service
over 30.

For purposes of determining plan benefits, earnings are the gross cash
compensation provided to a participant, including overtime and bonuses.

Early retirement benefits are payable under the Pension Plan.

Generally, the payment of benefits will be in the form of a straight-
life annuity for participants who are not married and a joint and
survivor annuity for those who are married.

*The amounts shown include benefits payable from the Supplemental
Retirement Arrangements.




                                    55<PAGE>

The number of years of credited service of the executive officers listed
in the remuneration table under the Retirement Plan, determined as of
February 28, 1998 are:  Mr. Manos, 27 years; Mr. Dobbin, 27 years;   
Mr. Rutstein, 20 years; Mr. Herriman 27 years; and Mr. Schoening 21
years.  

Supplemental Retirement Arrangements:

An unfunded non-qualified pension plan, the Excess Benefit Savings Plan,
provides a make-up benefit for those executives who are impacted by the
compensation limitations of Section 401(a)(17) of the Internal Revenue
Code and by the maximum benefit limitations of Section 415 of the
Internal Revenue Code.  A provision of this plan also provides that
certain officers are entitled to a make-up benefit equal to 60% of their
earnings averaged over the five years prior to retirement, less amounts
payable from the Retirement Plan (including non-qualified pension plan
benefits described above), the Profit Sharing and Thrift Plans, and from
social security. 

Mr. Dobbin is the only person who qualified for the 60% provision. 
However, it was not applicable because his benefits payable from the
pension plan, the Profit Sharing and Thrift Plan, and social security
exceeded 60% of his average earnings over the five years prior to his
retirement.

Compensation of Directors

During Fiscal Year 1998, Directors and Directors Emeritus who were not
employees received an annual fee of $35,000 and $10,000 respectively,
and a fee of $250 for committee meetings attended.

Employment Contracts and Termination of Employment and Change in Control
Arrangements

Officers of the corporation have contracts that provide benefits in the
event of job loss after change in control, or severance.  Subject to the
satisfaction of several requirements; (1) an officer who loses his/her
job within two years of a change in control will receive for a period of
24 months, or (2) an officer who is terminated will receive severance
for a period of one month per year of service to the Company, (but not
more than 24 months nor less than 3 months and only until retirement age
or said retirement benefits are paid):

        A.  Base salary continued at the rate in effect on the date      
            prior to termination;

        B.  Bonus continuation based on the average bonus percentage
            paid during the three prior years under the Company's
            executive bonus plan; and

        C.  Medical and life insurance coverage comparable to that 
            provided to other officers who remain in the employ of the 
            Company.




                                    56<PAGE>
If any of the events had occurred on February 28, 1998, the following
individuals would have been entitled to receive the following amounts:

                  Change in Control                Severance

Pete L. Manos       1,651,650                      1,651,650    
Alvin Dobbin*               0                              0
David W. Rutstein     875,800                        729,833           
M. Davis Herriman     773,800                        773,800
Robert W. Schoening   570,164                        498,893

*Mr. Dobbin is not entitled to any payments under the Change in Control
and Severance Agreement because the plan prohibits payments to anyone
over the age 65.  The Company provided an informal arrangement for Mr.
Dobbin pursuant to which Mr. Dobbin will continue to be paid his base
pay and car allowance in effect on February 28, 1998, through December
31, 1998.  These payments will total $290,000.


Compensation Committee Interlocks and Insider Participation

Mrs. Unseld and Messrs. Beckner and O'Malley comprise the Company's
Officers' Executive Compensation Committee.  Mr. O'Malley is of counsel
to the law firm of O'Malley & Miles which represents the Company with
respect to certain legal matters.































                                    57<PAGE>
ITEM 12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
             MANAGEMENT

                (a)  Security Ownership of Certain Beneficial Owners
                       (as of May 1, 1998)

                  The following table sets forth information with respect
to the ownership of the voting securities of the Company as of May 1,
1998.
                                                      Nature
                                          Number      of
                        Title of          Shares      Beneficial Percent
Name and Address        Class of Stock    Owned       Ownership  of Class

The 1224 Corporation(1) Common AC         125,000     Direct      100.0%
6300 Sheriff Road                                     
Landover, Maryland  20785

J Sainsbury (USA)
 Holdings Inc.          Common AL         125,000     Direct      100.0%
P.O. Box 3566
Portland, Maine  04104

                (b)  Security Ownership of Management (as of May 1, 1998)

                  The following table sets forth the number of each class
of equity securities of the Company beneficially owned by each (i)
director, (ii) named executive officers and (iii) Directors and Executive
Officers of the Company as a group as of May 1, 1998.
                                                      Nature
                                          Number      of
                        Title of          Shares      Beneficial Percent
Name and Title          Class of Stock    Owned       Ownership  of Class
David J. Sainsbury      Common Stock A          0(2)  Direct and      0%
     Director           (Non-Voting)                  Indirect

Harry Beckner           Common Stock A      1,000     Direct      .0017%
     Director           (Non-Voting)

Pete L. Manos           Common Stock A    157,208(3)  Direct and  .2605%
     Chairman of the Board,                            Indirect
     President, CEO, and
     Director

Alvin Dobbin            Common Stock A    147,932(4)  Direct and  .2451%
     Exec. Vice Pres.,  (Non-Voting)                  Indirect
     Chief Operating
     Officer,
     Director

Constance M. Unseld     Common Stock A      1,000     Direct      .0017%
     Director           (Non-Voting)  

                                    58       <PAGE>
                                                      Nature
                                          Number      of
                        Title of          Shares      Beneficial Percent
Name and Title          Class of Stock    Owned       Ownership  of Class
Peter F. O'Malley       Common Stock A      2,000     Indirect    .0033%
     Director           (Non-Voting)

Rosemary P. Thorne      Common Stock A          0     Direct          0%  
     Director           (Non-Voting)

Raymond A. Mason        Common Stock A      1,000     Direct      .0017%
     Director           (Non-Voting)

David Bremner           Common Stock A          0     Direct          0%
     Director           (Non-Voting)

Millard F. West, Jr.    Common Stock A     23,800(5)  Indirect    .0394%
     Director Emeritus  (Non-Voting)                 

Morton H. Wilner        Common Stock A     10,000     Indirect    .0166%
     Director Emeritus  (Non-Voting)                 

David W. Rutstein       Common Stock A    129,382(6)  Direct and  .2144%
     Sr. Vice President-(Non-Voting)                  Indirect
     General Counsel,
     Chief Administrative
     Officer, Secretary

M. Davis Herriman       Common Stock A     68,950(7)  Direct and  .1143%
     Sr. Vice President-(Non-Voting)                  Indirect
     Grocery, Bakery and
     Pharmacy and Chief
     Merchandising Officer

Robert W. Schoening     Common Stock A     55,600(8)  Direct and  .0921%
     Sr. Vice President-(Non-Voting)                  Indirect
     Information Systems

All Directors and       Common Stock A  1,396,528(9)  Direct and 2.3141%
     Officers as a      (Non-Voting)                  Indirect
     Group (29 persons)

                        Common Stock AC   125,000(10)           100.000%
                        (Voting)   

                        Common Stock AL   125,000(10)           100.000%
                        (Voting)   
                     





                                    59  <PAGE>
NOTES:

(1)   Pursuant to the Will of Israel Cohen, the Class AC Voting Common
      Stock was transferred to The 1224 Corporation, a Delaware
      Corporation.  The 1224 Corporation issued all of its non-voting
      stock to the Israel Cohen Estate and all of its 500 outstanding
      voting shares to four officers of the company, (Pete L. Manos,
      Alvin Dobbin, David W. Rutstein and Roger D. Olson) and to Mr.     

      Cohen's sister, Lillian Cohen Solomon (100 shares each).  The
      holders of The 1224 Corporation voting stock have the exclusive
      right to exercise all the voting rights in the Class AC Voting
      Common Stock.

(2)   Mr. Sainsbury disclaims beneficial ownership of the Common Stock
      of the Company beneficially owned by J Sainsbury (USA) Holdings
      Inc.  Mr. Sainsbury is a director of J Sainsbury plc, the
      ultimate parent company of J Sainsbury (USA) Holdings Inc.  In
      addition to the 125,000 Class AL voting shares listed above,
      J Sainsbury (USA) Holdings Inc. owns 11,779,931 Class A non-voting
      shares.

(3)   Includes 118,500 shares acquirable under stock option plans
      within sixty days.  Mr. Manos disclaims beneficial ownership of the
      Class AC shares held by The 1224 Corporation except for 100 shares.

(4)   Includes 43,500 shares acquirable under stock option plans
      within sixty days.  Mr. Dobbin disclaims beneficial ownership of
      the Class AC shares held by the 1224 Corporation except for 100
      shares.

(5)   Includes 13,000 shares owned by wife for which Mr. West disclaims
      beneficial ownership. 

(6)   Includes 41,500 shares acquirable under stock option plans
      within sixty days.  Mr. Rutstein disclaims beneficial ownership
      of the Class AC shares held by the 1224 Corporation except for 100
      shares.

(7)   Includes 34,900 shares acquirable under stock option plans within
      sixty days. 

(8)   Includes 33,600 shares acquirable under stock option plans within
      sixty days.

(9)   Includes shares acquirable under stock option plans within sixty    
      days.

(10)  As noted in Item 12(a) above.

            (c)  Changes in Control

                      Not applicable. 
                                    60  <PAGE>
ITEM 13.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

             (a)     Transactions with Management and Others

                      Not applicable.

             (b)     Certain Business Relationships

             During the Company's most recent fiscal year, the law firm
of O'Malley & Miles, to which Mr. O'Malley is of counsel, provided
certain legal services to the Company.

             Mr. Mason is the Chairman, President, and CEO of Legg Mason,
Inc. which performs certain financial services for the Company.  Services
provided in Fiscal Year 1998 were provided on a competitive market basis
and were not financially material to the Company

             (c)     Indebtedness of Management

                     Not applicable.

             (d)     Transactions with Promoters

                     Not applicable.





























                                    61<PAGE>

                              PART IV

ITEM 14.     EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS
             ON FORM 8-K
                                                          Page in
                                                          Form 10-K

(a)     The following documents are filed as part
        of this report:

        (1)     Financial Statements and
                supplementary data:

                Report of Independent Accountants             21 
                Consolidated Statements of Income
                 for the years ended February 28,
                 1998, February 22, 1997, and
                 February 24, 1996                            22        
                Consolidated Balance Sheets at                
                 February 28, 1998, February 22,
                 1997, and February 24, 1996                 23-24 
                Consolidated Statements of Changes
                 in Shareholders' Equity for the years
                 ended February 28, 1998, February 22,
                 1997, and February 24, 1996                 25-26
                Consolidated Statements of Cash Flows
                 for the years ended February 28, 1998,
                 February 22, 1997, and February 24,
                 1996                                        27-28
                Notes to Consolidated Financial
                 Statements                                  29-42
      
                Supplementary Financial Information
                 (unaudited)                                 43
          
        (2)     Financial Statement Schedules:

                        All schedules are omitted because they are not
applicable or the required information is shown in the consolidated
financial statements or notes thereto.

        (3)      Exhibits:

                 The Index to Exhibits is on page 65.

(b)     Reports on Form 8-K

                 No report on Form 8-K was filed by the Registrant during
the Fourth Quarter of the Fiscal Year ending February 28, 1998.
 


                                    62<PAGE>

                                 SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


                                 GIANT FOOD INC.



                                 BY: /s/ Pete L. Manos                    
                                    Pete L. Manos, 
                                    Chairman of the Board, President and
                                    Chief Executive Officer





































                                      63<PAGE>
         Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

                       GIANT FOOD INC.


May 19, 1998        By: /s/ Pete L. Manos                              
                       Pete L. Manos
                       President and Principal Executive Officer


May 19, 1998        By: /s/ Pete L. Manos                              
                       Pete L. Manos, Director


May 19, 1998        By: /s/ Alvin Dobbin                                 
                       Alvin Dobbin, Director

                       
May 19, 1998        By: /s/ David J. Sainsbury                           
                       David J. Sainsbury, Director


May 19, 1998        By: /s/ Harry Beckner                              
                       Harry Beckner, Director


May 19, 1998        By: /s/ Constance M. Unseld                        
                       Constance M. Unseld, Director


May 19, 1998        By: /s/ Peter F. O'Malley                          
                       Peter F. O'Malley, Director


May 19, 1998        By: /s/ Raymond A. Mason                            
                       Raymond A. Mason, Director


May 19, 1998        By: /s/ Rosemary P. Thorne                           
                       Rosemary P. Thorne, Director


May 19, 1998        By: /s/ David Bremner                                  
                       David Bremner, Director










                                      64<PAGE>
                            INDEX TO EXHIBITS

Exhibit No.   Exhibit               Page No.

3.(i)       Articles of             Incorporated by reference
            Incorporation           to the Company's Form 10-K
                                    filed with the SEC in 
                                    May, 1997 for the Fiscal
                                    Year Ended February 22, 1997
           

3.(ii)      By-Laws                 Incorporated by reference
                                    to the Company's Form 10-K
                                    filed with the SEC in
                                    May, 1997 for the Fiscal
                                    Year Ended February 22, 1997

10.1        1989 Non-Qualified      Incorporated by reference
            Stock Option Plan       to the Company's Form 10-K
                                    filed with the SEC in
                                    May, 1993 for the Fiscal
                                    Year Ended February 27, 1993     


10.2        Non-Qualified Executive Incorporated by reference 
            Stock Bonus Plan        to the Company's Form 10-K
                                    filed with the SEC in
                                    May, 1993 for the Fiscal 
                                    Year Ended February 27, 1993     


10.3        Split Dollar Insurance  Incorporated by reference
            Program                 to the Company's Form 10-K
                                    filed with the SEC in
                                    May, 1993 for the Fiscal
                                    Year Ended February 27, 1993     


10.4        Supplemental Retirement Incorporated by reference
            Plan                    to the Company's Form 10-K
                                    filed with the SEC in
                                    May, 1993 for the Fiscal 
                                    Year Ended February 27, 1993     


10.5        Excess Benefit Plan     Incorporated by reference
                                    to the Company's Form 10-K
                                    filed with the SEC in
                                    May, 1993 for the Fiscal
                                    Year Ended February 27, 1993     


                                   
                                   
                                      

                                      65<PAGE>
                      INDEX TO EXHIBITS

Exhibit No.   Exhibit                Page No.

                                   
10.6        Giant Food Inc. 9.60%    Incorporated by reference
            Promissory Notes Due     to the Company's Form 10-K
            October 15, 2001 Note    filed with the SEC in
            Agreement with The       May, 1997 for the Fiscal
            Prudential Insurance     Year Ended February 22, 1997
            Company of America
            dated October 28, 1986
            ("1986 Note Agreement") 


10.7        Giant Food Inc. 9.83%    Incorporated by reference
            Promissory Notes Due     to the Company's Form 10-K 
            August 4, 2012 Note      filed with the SEC in
            Agreement with The       May, 1997 for the Fiscal
            Prudential Insurance     Year Ended February 22, 1997
            Company of America
            dated August 4, 1987 
           ("1987 Note Agreement")                       


10.8        Letter Agreement dated   Incorporated by reference 
            July 15, 1988            to the Company's Form 10-K
            referencing the Note     filed with the SEC in
            Agreement dated October  May, 1997 for the Fiscal
            28, 1986 and the Note    Year Ended February 22, 1997
            Agreement dated August
            4, 1987 respectively, 
            each between Giant Food
            Inc. and The Prudential 
            Insurance Company of 
            America                


10.9        Letter dated August 5,   Incorporated by reference 
            1991 referencing the     to the Company's Form 10-K
            Note Agreement between   filed with the SEC in
            Giant Food Inc. and The  May, 1997 for the Fiscal
            Prudential Insurance     Year Ended February 22, 1997 
            Company of America dated
            October 28, 1986, as
            amended 










                                      66<PAGE>

                      INDEX TO EXHIBITS

Exhibit No.   Exhibit                Page No.

10.10       Amendment, Assumption    Incorporated by reference 
            and Guarantee Agreement  to the Company's Form 10-K
            dated as of February 28, filed with the SEC in
            1992 by and among Giant  May, 1997 for the Fiscal 
            Food Inc., Giant of      Year Ended February 28, 1997 
            Landover, Inc., Giant of
            Maryland, Inc. and The 
            Prudential Insurance 
            Company of America      


10.11       Amendment, Assumption    Incorporated by reference 
            and Guarantee Agreement  to the Company's Form 10-K
            dated as of February 27, filed with the SEC in
            1993 by and among Giant  May, 1997 for the Fiscal 
            Food Inc., Giant of      Year Ended February 28, 1997 
            Landover, Inc. and The
            Prudential Insurance 
            Company of America                           

10.12       Change in Control
            and Severance Agreement           68

11          Computation of Earnings
            Per Common Share                  77


21          Subsidiaries                      78


23          Consent of Independent 
            Accountants                       79

27          Financial Data Schedule     

















                                      67      <PAGE>
  

            CHANGE IN CONTROL AND SEVERANCE AGREEMENT


     THIS CHANGE IN CONTROL AND SEVERANCE AGREEMENT ("Agreement") is made
and entered into as of the _____ day of _______________, 1997, by and
between GIANT FOOD, INC., a Delaware corporation (the "Company"), and
__________ ("You" or "Your" or "Yourself").

                         R E C I T A L S

     You are a principal officer of the Company and an integral part of its
management; 

     The Board of Directors of the Company (the "Board") has determined
that it is in the best interests of the Company and its shareholders to
assure that the Company will have Your continued dedication,
notwithstanding the possibility, threat, or occurrence of a Change in
control of the Company; and 

     You have been given the opportunity to review this Agreement; to
evaluate the benefits that this Agreement provides to You and the burdens
and restrictions that this Agreement will impose upon You; and to seek the
advice of independent professional advisers.

     WE HEREBY AGREE AS FOLLOWS:

Section 1.   Definitions.

     Section 1(a).  "Cause" shall mean any act or omission to act, or any
series of acts or omissions to act, or any course of conduct by You that,
in the opinion of a majority of the Company's Board acting in good faith,
constitutes reckless, unethical, or criminal misconduct, willful
misfeasance, gross negligence or any other material breach of Your duties
to the Company.  

     Section 1(b).  A "Change in Control" shall mean:

          (i)   any merger or consolidation of the Company with any entity
not controlled by the 1224 Group;

          (ii)  any transfer, sale or exchange of ownership of the Class AC
Stock to any entity not controlled by the 1224 Group;

          (iii) any transfer by The 1224 Corporation of its voting power
over the Class AC Stock (i.e., a voting trust) to any entity not controlled
by the 1224 Group; or








                                      68  <PAGE>

          (iv)  any redemption of the Class AC Stock or any other action
that eliminates the special voting power of the Class AC Stock.

     Section 1(c).  The "Change in Control Period" is the period commencing
on the date of a Change in Control (as defined in Section 1(b)) and ending
on the earlier to occur of (i) 24 months after a Change in Control, or (ii)
the first day of the month following Your retirement at the Normal
Retirement Age.  

     Section 1(d).  "Confidential Information" shall be deemed to include,
but shall not be limited to, any and all ideas, creations, inventions,
improvements, know-how, customer lists, business plans, business and
marketing strategies, developments or products of the Company, or other
secrets of the Company that are not generally known in the supermarket or
drug store industries and which in any manner become known to You as a
consequence of or through Your employment; Company handbooks, guidebooks,
manuals, and internal controls; policies, procedures, and guidelines,
whether or not published by the Company; contracts and agreements between
the Company and third parties; and such other information that has not
entered the public domain as the Company may designate as confidential by a
written designation to that effect.

     Section 1(e).  "Good Reason" shall mean any action taken by the
Company, including any change in Your titles, authority, duties or
responsibilities from those in effect during the immediately preceding 180-
day period which results in a permanent and material diminution in an
officer's position, authority, duties or responsibilities within the
Company; unless either (i) such action is taken by the Company for cause,
or (ii) such action results from a termination or outsourcing by the
Company of a department or function.

     Section 1(f).  The "Normal Retirement Age" is Your 65th birthday, and
the "Normal Retirement Date" is the date You turn age 65. 

     Section 1(g).  "Severance Policy" means those severance benefits and
limitations discussed under Section 3 of the Agreement.

     Section 1(h).  "Termination" means discontinuation of Services
provided by You to the Company.

     Section 1(i).  "1224 Group" means any persons who were shareholders of
The 1224 Corporation within the prior 24 months.


Section 2.   Change in Control.










                                      69<PAGE>

     Section 2(a).  Change in Control Benefit.  If You satisfy the
requirements of Section 2(b)(i), (ii), or (iii) prior to attaining Normal
Retirement Age, then for 24 months, or until Your benefits are terminated
under any other provision of this Agreement, You will receive:

          (i)   Your base salary at the rate in effect on the date prior to
termination;

          (ii)  bonus continuation based on the average bonus percentage
paid during the three prior years under the Company's executive bonus plan;
and
          (iii) medical and life insurance coverage comparable to that
provided to other officers who remain in the employ of the Company.  

     Section 2(b).  Entitlement to Receive Change in Control Benefits.  You
will be entitled to receive the Change in Control benefits only if either:

          (i)   You terminate your employment within 24 months after a
Change in Control for good reason; or

          (ii)  The Company terminates Your employment within 24 months
after a Change in Control, for any reason other than for cause or Your
physical or mental incapacity; or

          (iii) The Company terminates Your employment during the six-month
period immediately preceding a Change in Control, for any reason other than
for cause or Your physical or mental incapacity, and such termination (i)
is made at the request of a third party who had taken steps reasonably
calculated to effect a Change in Control that later occurred, or (ii)
otherwise arose in connection with or anticipation of a Change in Control
that later occurred.

     Section 2(c).  Limitations on Change in Control Benefits.  Change in
Control benefits will cease immediately if:  

          (i)   You attain Normal Retirement Age, or

          (ii)  You begin to receive early retirement benefits under the
Company's Retirement Plan.

In addition, You will not be entitled to receive any benefits under the
Change in Control policy unless You irrevocably waive any benefits due to
You under the Severance Policy set forth in Section 3 of this Agreement and
repay any benefits previously received by You under such Severance Policy.

Section 3.   Severance Policy.







                                      70<PAGE>

     Section 3(a).  Entitlement to Receive Severance Benefits.  Until Your
Normal Retirement Date, You are entitled to receive severance benefits (as
defined below) for any involuntary termination of employment that is not a
Termination for Cause.  Receipt of severance benefits is conditioned upon
Your compliance with Sections 6 and 7 of this Agreement.

     Section 3(b).  Severance Benefits.  Where the terms of Section 3(a)
are met and You have not yet attained Normal Retirement Age, You will
receive for a period of one month per year of service to the Company, but
not more than 24 months nor less than 3 months: 

          (i)   Your base salary at the rate in effect on the date prior to
termination; 

          (ii)  bonus continuation based on the average bonus percentage
paid during the three prior years under the Company's executive bonus plan;
and 

          (iii) medical and life insurance coverage comparable to that
provided to other officers who remain in the employ of the Company.  

     Section 3(c).  Limitations on Severance Benefits.  Severance benefits
will cease immediately, even if the severance benefit period computed under
the formula has not yet expired, if:  

          (i)   You attain Normal Retirement Age; 

          (ii)  You begin to receive early retirement benefits under the
Company's Retirement Plan; or 

          (iii) You fail to comply with the conditions set forth in Section
6 and Section 7 of this Agreement.

Section 4.   Non-Exclusivity of Rights.

     Nothing in this Agreement shall prevent or limit Your continuing or
future participation in any benefit, bonus, incentive or other plans,
programs, policies or practices, provided by the Company and for which You
may qualify, nor shall anything herein limit or otherwise affect such
rights as You may have under any stock option or other agreement with the
Company.  Amounts which are vested benefits or which You are otherwise
entitled to receive under any plan, policy, practice or program of the
Company at or subsequent to the date of Termination shall be payable in
accordance with such plan, policy, practice or program.  If You have
received benefits under the Severance Policy or Change in Control Policy,
You may continue personal medical insurance coverage and coverage for any
eligible dependants after the end of the period of paid coverage by paying








                                      71<PAGE>
premiums at the group rates that the Company pays (as adjusted annually).

Section 5.   Payment of Applicable Taxes.

     The Company may withhold from any amounts payable under this Agreement
such federal, state or local taxes as shall be required to be withheld
pursuant to any applicable law or regulation.















































                                      72<PAGE>


Section 6.   Confidential Information.  

     Section 6(a).  Officer's Acknowledgment.  You acknowledge that
preservation of a continuing business relationship between the Company and
its customers, representatives, and employees is of critical importance to
the continued business success of the Company and that it is the active
policy of the Company to guard as confidential certain information not
available to the public relating to the business affairs of the Company. 
In view of the foregoing, You agree that any and all "Confidential
Information" (as defined in Section 1(d)) that is created, developed or
discovered by or for the Company, or acquired by or for the Company from
others, and that comes into Your knowledge or possession during or in the
course of Your employment with the Company, shall be received by You as an
employee of the Company and not in any way for Your own benefit, and that
You shall have no rights and shall acquire no rights therein.  You further
agree that any and all Confidential Information that is invented, created,
written, developed, furnished or produced by You during the term of Your
employment with the Company shall be the exclusive property of the Company,
and that You shall have no right, title or interest of any kind therein or
thereto or in and to any results or proceeds therefrom.  

     Section 6(b).  General Restrictions on Use of Confidential
Information.  Unless specifically authorized in writing by the Company's
Board, You shall not, without limitation as to time or place, use any
Confidential Information except on Company business during Your period of
employment and shall not disclose Confidential Information to any other
person or company, except for disclosure on Company business.  Upon Your
Termination of employment with the Company for whatever reason, You shall
promptly deliver to the Company all Confidential Information and other
materials of the Company in Your possession or under Your control.

     Section 6(c).  Non-Solicitation and Non-Raiding.  To forestall the
disclosure or use of Confidential Information in breach of Section 6(b),
and in consideration of this Agreement, Officer agrees that for a period of
two (2) years after termination of Your employment, You shall not, for
Yourself or any third party, directly or indirectly (i) divert or attempt
to divert from the Company any business of any kind in which it is engaged,
or interference with any of its suppliers or customers, or (ii) solicit for
employment any person employed by the Company, during the period of such
person's employment and for a period of one year after the termination of
such person's employment with the Company.

     Section 6(d).  Survival.  Notwithstanding any provision of the
Agreement to the contrary, the provisions of this Section 6 shall survive
the termination or expiration of this Agreement, shall be valid and







                                      73<PAGE>
enforceable, and shall be a condition precedent to Your receiving any
amounts payable hereunder. 

Section 7.   Covenant Not to Compete.

     You hereby covenant and agree, which covenants and agreements are of
the essence of this Agreement, that at no time during the entire term of
employment with the Company, nor for a period of two (2) years immediately
following the Termination thereof (regardless of whether said termination
is voluntary or involuntary) will You for Yourself or on behalf of any
other person or company without the prior written approval of the Company's
Board of Directors: 

          (i)   participate in the management of, or accept any employment
or consultation work with any company that directly or indirectly carries
on supermarket or drug store operations within twenty-five (25) miles of
any store location operated by the Company or any of its subsidiaries, 

          (ii)  induce any customers of the Company with whom You have had
contacts or relationships, directly or indirectly, during and within the
scope of Your employment with the Company to curtail or cancel their
business with the Company; or 

          (iii) induce, or attempt to influence, any employee of the
Company to terminate employment.

     However, nothing in this Section 7 shall prohibit You from owning
stock or other securities of a competitor amounting to less than five
percent of the outstanding capital stock of such competitor.

Section 8.   Remedies for Breach of Agreement.

     If You commit a breach or threaten to commit a breach of any of the
provisions of this Agreement, the Company shall have the right to have the
provisions of this Agreement specifically enforced by any court having
equity jurisdiction without having to prove the inadequacy of the available
remedies at law or irreparable injury, it being acknowledged and agreed as
between the parties that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages cannot provide an
adequate remedy to the Company.  In addition, the Company may take all such
other actions and remedies available to it under law or in equity and shall
be entitled to such damages as it can show it has sustained by reason of
such breach, together with court costs and attorneys fees.  This Agreement
shall not limit, affect, or impair the Company's rights under general law
pertaining to an officer's fiduciary duties to his employer, the law of
unfair competition, or any other rights and remedies which may be available
to the Company in addition to those expressly set forth in this Agreement.









                                      74  <PAGE>

Section 9.   Termination of Agreement.  

     This Agreement will terminate upon Your death, in which case Your
heirs shall be entitled to receive Your accrued salary and benefits as of
the date of termination.

Section 10.  Binding Effect.  

     The rights and obligations of the Company under this Agreement shall
inure to the benefit of and be binding upon the Company and its successors
and assigns.  This Agreement is personal to You and without the prior
written consent of the Company shall not be assignable by You otherwise
than by will or the laws of descent and distribution.  This Agreement shall
inure to the benefit of and be enforceable by Your heirs, executors and
administrators.  

Section 11.  Successors to the Company.

     The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all
of the business and/or assets of the Company to expressly, absolutely and
unconditionally assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform
it if no such succession had taken place.  As used in this Agreement,
"Company shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.

Section 12.  Notice.

     All notices and other communications hereunder shall be in writing and
may be personally delivered, deposited in the United States mail (first
class postage prepaid, return receipt requested), transmitted by telecopier
or telex, or sent by a private messenger or carrier which issues delivery
receipts, addressed as follows:

     If to You:      ________________________________
                     ________________________________
                     ________________________________

     If to the Company:  Giant Food, Inc.
                         Attn: Chief Administrative Officer
                         6300 Sheriff Road
                         Landover, Maryland 20785











                                      75<PAGE>

or to such other address as either party shall have furnished to the other
in writing in accordance herewith.  Notice and communications shall be
effective upon receipt.  

Section 13.  Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement.

Section 14.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Maryland.

Section 15.  Waiver of Breach.  Forbearance by either party to require
performance of any provision hereof shall not constitute or be deemed a
waiver by such party of such provision or of the right thereafter to
enforce the same, and no waiver by either party to any breach or default
hereunder shall constitute or be deemed a waiver of any subsequent breach
or default, whether of the same or similar nature or if any other nature,
or a waiver of the provisions or provisions breached or with respect to
which such default occurred. 

Section 16.  Entire Agreement.  This Agreement contains the entire
understanding of the Company and You with respect to the subject matter
hereof.  The captions of this Agreement are not part of the provisions
hereof and shall have no force or effect.  This Agreement may not be
amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives. 
This Agreement may not be changed, modified or amended in whole or in part
except by writing and signed by both parties.  

     IN WITNESS WHEREOF, You have hereunto set Your hand and, pursuant to
the authorization from its Board, the Company has caused this Agreement to
be executed in its name on its behalf, all as of the day and year first
above written.


                                                             
                             [Name of Officer]
                             GIANT FOOD, INC.


                         By:                              
                       Name: Pete L. Manos
                      Title: Chairman of the Board, President,              
                             and Chief Executive Officer











                                      76<PAGE>

                           EXHIBIT 11

                GIANT FOOD INC. AND SUBSIDIARIES

             COMPUTATION OF EARNINGS PER COMMON SHARE

Fifty-three weeks ended February 28, 1998, fifty-two weeks ended February
22, 1997 and February 24, 1996 

                               1997         1996          1995 
Basic Earnings:
    Net income            $ 71,190,000   $ 85,504,000  $102,153,000

Basic weighted average number
  of common shares          60,056,932     59,778,489    59,360,234         

Primary earnings per
  common share                   $1.19          $1.43         $1.72

Diluted Earnings:
  Net income              $ 71,190,000   $ 85,504,000  $102,153,000 

Basic weighted average number
  of common shares          60,056,932     59,778,489    59,360,234

  Incremental shares from assumed
   exercise of options *       354,068        648,511       375,204    

  Diluted weighted average  60,411,000     60,427,000    59,735,438

Diluted earnings per
   common share                  $1.18          $1.42         $1.71

 
* The assumed exercise of stock options is at average market price reduced
by the number of shares which could have been purchased with the proceeds
from the exercise of such options, net of income tax effect. 


















                                      77    <PAGE>
                                EXHIBIT 21



                     GIANT FOOD INC. AND SUBSIDIARIES


                               Subsidiaries

                                                    State of
Subsidiary                                          Incorporation

Giant of Friendship, Inc.                           District of Columbia
Giant of Maryland, Inc.                             Maryland
Giant of Salisbury, Inc.                            Maryland
Giant Construction Company, Inc.                    District of Columbia
GF McLean Shopping Center, Inc.                     Virginia
GFS Realty, Inc.                                    Delaware
Warex-Jessup, Inc.                                  Maryland
Bursil, Inc.                                        Delaware
Cole Engineering, Inc. (formerly Cole Carpets, Inc.)Maryland
LECO, Inc. (formerly Viva Pharmaceuticals, Inc.)    Delaware
Giant Automatic Money Systems, Inc.                 Maryland
Shaw Community Supermarket, Inc.(1)                 District of Columbia
Bayside Traffic Services of Maryland, Inc.          Maryland
Super G, Inc.                                       Maryland
Montrose Crossing, Inc.                             Maryland
Friendship Macomb SC, Inc.                          District of Columbia
Giant of Talbot Co., Inc.                           Maryland
Giant of Cherry Hill, Inc.                          New Jersey


             

(1)  Giant Food Inc. owns 85% of the voting
     securities of Shaw Community Supermarket, Inc.,
     and 100% of the voting securities of all other
     subsidiaries.


















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                                EXHIBIT 23


                    CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the Registration
Statements on Form S-8 (Nos. 33-64745, 33-33049, and 33-21992) and in
the Prospectuses constituting part of the Registration Statements on
Forms S-3 (Nos. 33-40851 and 33-45261) of Giant Food Inc. of our report
dated March 30, 1998 appearing on page 20 of this Form 10-K.


/s/
PRICE WATERHOUSE LLP
Washington, D.C.
May 19, 1998







































                                    79<PAGE>