Ahold Delhaize Shifts to Store-Based Fulfillment, Closing Six Distribution Centers

This transition is set to be completed by the end of the first quarter of 2026. Ahold Delhaize, a global food retailer, will close six centralized distribution centers in Virginia and Pennsylvania by the end of Q1 2026 as it transitions to a store-based fulfillment model. This shift, affecting 209 workers, aims to enhance operational efficiency and customer service.

Ahold Delhaize, a prominent global food retailer, has announced the closure of six of its centralized distribution centers as part of its strategic shift towards a store-based fulfillment model. This transition is set to be completed by the end of the first quarter of 2026.

Distribution Centers Affected

The company plans to close distribution centers located in Virginia and Pennsylvania. Specifically, the facility in Manassas, Virginia, and five centers in Pennsylvania, including those in Windsor and Norwalk, are scheduled for closure. These closures mark the largest operational shift the company has undertaken in recent years.

With a total of 209 workers facing potential layoffs, Ahold Delhaize has stated that affected associates will be offered other positions within the company. The organization aims to mitigate the impact on its workforce by ensuring opportunities for continued employment.

Transition to Store-Based Fulfillment

The decision to pivot towards a store-based fulfillment strategy is part of Ahold Delhaize's efforts to enhance its operational efficiency and customer service. By leveraging its existing store network, the company intends to streamline the fulfillment process for both delivery and pickup services.

Despite the closure of these centralized distribution centers, Ahold Delhaize has confirmed that its delivery and pickup services will continue without interruption. The company has established partnerships with third-party service providers such as Instacart and DoorDash to maintain its service levels during the transition.

Impact on Giant Food and Giant Company

The closures will also affect Ahold Delhaize's subsidiaries, including Giant Food and Giant Company. These brands will be transitioning to the store-based model as well, aligning with the broader organizational strategy. The shift is expected to enhance the customer experience by improving the speed and efficiency of order fulfillment.

Through this model, Ahold Delhaize aims to offer more localized and flexible fulfillment options, which are increasingly demanded by consumers in today's retail landscape. This approach is anticipated to better position the company to meet changing consumer expectations and preferences.

Looking Ahead

Ahold Delhaize's decision to close its centralized distribution centers and transition to a store-based fulfillment model reflects a significant change in its operational strategy. As the company navigates this transformation, its focus remains on minimizing disruption to its workforce and maintaining high standards of customer service.

By the end of Q1 2026, the company expects to have fully implemented its new fulfillment strategy, marking a new chapter in its operational approach. This shift underscores Ahold Delhaize's commitment to adapting to the evolving demands of the retail sector, ensuring its continued competitiveness in the market.