Giant Food to Close Two Fulfillment Centers as Delivery Strategy Evolves

The closures are expected to be completed by the end of the first quarter of 2026. This transition, affecting over 100 employees and set for completion by Q1 2026, aligns with parent company Ahold Delhaize's broader strategy to enhance delivery efficiency thr… The Manassas facility, which spans 82,000 square feet, will remain operational and is equipped with the latest batch-picking software.

Giant Food has announced the closure of two fulfillment centers as part of a strategic shift in its delivery model. The centers located in Hanover, Maryland, and Milford, Delaware, will be shut down, while the Manassas, Virginia facility will continue operations. This decision is part of a broader transition by Ahold Delhaize, Giant Food's parent company, moving towards a store-based fulfillment model.

Changes in Fulfillment Strategy

The evolving strategy involves utilizing in-store employees to handle delivery operations, marking a departure from the centralized distribution centers that have been used previously. This shift is expected to optimize delivery services and enhance efficiency, leveraging existing store resources and infrastructure.

The Manassas facility, which spans 82,000 square feet, will remain operational and is equipped with the latest batch-picking software. This software is designed to improve the efficiency and accuracy of order fulfillment, indicating a continued investment in technological advancements even as the company transitions its overall strategy.

Impact on Employees and Operations

The closure of the Hanover and Milford centers will affect more than 100 employees. Giant Food has stated that affected associates will be offered other positions within the company, aiming to minimize the impact on its workforce. The closures are expected to be completed by the end of the first quarter of 2026.

In addition to the centers in Hanover and Milford, Ahold Delhaize is also closing its distribution center in Lehigh Valley, Pennsylvania. This is part of a larger initiative that involves shutting down six centralized distribution centers across various locations. Five additional centers in Pennsylvania are also slated for closure.

Continuing Delivery and Pickup Services

Despite these closures, Giant Food has assured customers that delivery and pickup services will continue. The company has established partnerships with Instacart and DoorDash to support its delivery operations, ensuring that service quality and availability remain high during and after the transition period.

These partnerships are expected to complement the new store-based fulfillment model, allowing Giant Food to maintain a robust delivery network while adapting to changing market demands and consumer preferences.

Looking Ahead

The move towards in-store fulfillment is part of a broader industry trend where retailers are seeking to integrate online and offline operations more seamlessly. By utilizing existing store resources and staff, companies like Giant Food aim to enhance service efficiency and reduce operational costs.

This strategic shift comes at a time when the retail landscape is rapidly evolving, driven by increased consumer demand for convenience and speed in delivery services. As Giant Food and its parent company, Ahold Delhaize, navigate these changes, the industry will be closely watching the impact of these operational shifts on service quality and customer satisfaction.