Major Retailers to Close Centralized E-Commerce Centers by 2026

Announced on November 19, 2025, this shift reflects a broader industry trend, with major retailers like Kroger and Stop & Shop also moving towards decentralized, in-store fulfillment strategies. The closures, announced on November 19, 2025, will result in significant job losses. Giant Food and The Giant Company are set to close their e-commerce centers, with the closures expected to be finalized by early 2026.

In a significant shift within the retail industry, several major retailers, including Giant Food and The Giant Company, have announced plans to close centralized e-commerce facilities by the end of the first quarter of 2026. This decision marks a strategic pivot towards in-store fulfillment methods as retailers respond to evolving customer expectations for quicker delivery times.

Closure of Facilities in Virginia and Pennsylvania

Giant Food and The Giant Company will shutter a total of six e-commerce centers located in Virginia and Pennsylvania. The affected facilities include Giant Food's center in Manassas, Virginia, and five additional facilities operated by The Giant Company in Pennsylvania. This move is part of a broader trend among retailers to transition from centralized e-commerce centers to using individual stores to fulfill digital orders.

Giant Food and The Giant Company are set to close their e-commerce centers, with the closures expected to be finalized by early 2026.

The closures, announced on November 19, 2025, will result in significant job losses. Giant Food's facility in Manassas, Virginia, is scheduled to close on February 10, 2026, leading to the loss of 90 jobs. Meanwhile, The Giant Company's facility in Philadelphia will close on February 13, 2026, resulting in 128 job losses. Affected employees are being offered other positions within the companies.

Transition to In-Store Fulfillment

The decision to close centralized e-commerce centers reflects a broader shift in the grocery retail sector towards a store-based fulfillment model. This change is driven by customer demand for faster delivery options, which can be more effectively met through local, store-first fulfillment networks. By leveraging the proximity of individual stores to customers, retailers aim to enhance the speed and efficiency of order fulfillment.

Retailers are moving away from centralized e-commerce centers in favor of using individual stores to fulfill digital orders.

Store-based fulfillment allows retailers to offer quicker customer availability, a key factor in the competitive e-commerce landscape. This method also enables better utilization of existing store infrastructure, reducing the need for additional investment in large-scale centralized facilities.

Impact on Other Major Retailers

Giant Food and The Giant Company are not alone in this strategic shift. Kroger, another major player in the grocery retail sector, is also transitioning to a store-based fulfillment model. The company has announced plans to close three automated fulfillment centers by early 2026, aligning with the industry's move towards decentralized order fulfillment.

Similarly, Stop & Shop is set to close seven e-commerce warerooms as part of its adaptation to changes in grocery e-commerce. These closures underscore the growing trend among retailers to integrate technology improvements that facilitate a more localized approach to fulfilling online orders.

Technological Advancements and Strategic Shifts

The transition from centralized e-commerce centers to store-based fulfillment is enabled by advancements in technology that have improved inventory management and order processing capabilities. These improvements allow retailers to implement a more flexible and responsive fulfillment strategy, aligning with consumer preferences for expedited service.

Technology improvements are paving the way for retailers to adopt a more localized, store-first fulfillment strategy.

As retailers like Giant Food, The Giant Company, Kroger, and Stop & Shop make these strategic shifts, the retail landscape continues to evolve. The emphasis on meeting customer demands for faster delivery, coupled with enhanced technological capabilities, is shaping the future of e-commerce fulfillment in the grocery sector.