Giant Food to shutter 2 fulfillment centers as it re-thinks delivery

Giant Food this week said it is shutting down two e-commerce fulfillment centers as it prepares to launch a new delivery model using in-store employees.

The regional supermarket chain, an Ahold Delhaize banner, said its fulfillment center in Manassas, Virginia, will remain open while centers in Hanover, Maryland, and Millford, Delaware, will shutter. 

The move is designed to "meet the changing needs of our customers for faster delivery, more delivery timeslots and a broader assortment," the grocer said in a statement. "We will consolidate our Giant Delivers business out of our newly opened Manassas, Virginia, e-commerce fulfillment center and launch a localized picked from store model using our Giant associates, as well as continue to partner with third-party providers to provide faster delivery for our customers."

The 82,000-square-foot Manassas facility includes the retailer's latest batch-picking software as well as a conveyor system that increases shopping speed.

Last month, Giant Food informed the Maryland Department of Labor of the impending layoffs of 362 employees due to the closure of the Hannover facility on Oct. 21.

Giant Food launched its omnichannel Giant Delivers offering in 2019.

The grocer has also experienced struggles recently with theft and violence, prompting Giant Food President Ira Kress to sound the alarm and say a law enforcement solution is needed.

“I would categorize it as a spiraling problem,” Kress told WGB. “It has escalated immensely—five to 10 times what it was just a mere three to five years ago.”

Giant Food was founded in 1936 and operates over 160 supermarkets in Virginia, Maryland, Delaware and Washington, D.C.