Ahold Delhaize to close distribution hubs as fast delivery trend grows
Ahold Delhaize USA is altering its fulfillment strategy for its Giant Food and Giant Company banners.
The U.S. subsidiary of Dutch supermarket conglomerate Ahold Delhaize is closing six centralized fulfillment locations for Giant Food and The Giant Company by the end of the first quarter of 2026. They include a centralized Giant Food e-commerce fulfillment center in Manassas, Va.; as well as five Giant Company facilities in Philadelphia, Willow Grove, Coopersburg, North Coventry and Lancaster, Penn.
According to Ahold Delhaize USA, it decided to close these facilities after considering customer trends and preferences for home delivery that increasingly include fast delivery and wider assortment and delivery availability.
Over the past several years, Ahold Delhaize USA grocery banners have been transitioning to a local, store-first fulfillment network in an effort to offer greater customer availability at faster speeds.
In addition to continuing to offer in-store fulfillment of customers' e-commerce orders for both pick-up and delivery, Ahold Delhaize USA companies will continue partnering with third-party fulfillment partners like Instacart and DoorDash for delivery. Using this approach, the company hopes to position each of its U.S. brands to offer pick-up and delivery options in as little as 30 minutes where possible.
Ahold Delhaize USA will take an estimated non-cash impairment charge of $35 million for the closures of the five Giant Company facilities and an estimated non-cash impairment charge of $15 million for the closure of the Giant Food facility.
The company said it has plans in place for each of its brands and support functions with affected associates that will include offer for other positions within their respective companies or opportunities to apply for open roles.
Ahold Delhaize USA is shuttering these facilities even as its distribution and transportation companies, ADUSA Distribution and ADUSA Transportation, are planning to build an $860 million "state-of-the-art" distribution center in Burlington, N.C.
[READ MORE: Ahold Delhaize plans fourth North Carolina distribution center]
The new facility will grow the company’s supply chain network, which serves Ahold Delhaize USA’s omnichannel grocery brands on the East Coast, by adding over 1 million sq. ft. of distribution infrastructure.
Construction on the new facility is expected to begin in 2026, with an anticipated start of operations in 2029. Over time, the site is expected to employ over 500 associates. To maximize efficiency, the company said the site will leverage proven supply chain automation technology.
Ahold Delhaize USA operates more than 2,000 stores in 23 states across its banners Food Lion, The Giant Company, Giant Food, Hannaford and Stop & Shop.
