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Ahold Delhaize USA readies six facilities for self-distribution in 2021

Supply-chain expansion plan to move all volume to self-managed network by 2023

Russell Redman

October 1, 2020

3 Min Read
Giant_Food_warehouse-Jessup_MD_copy.jpg
The Giant Food warehouse in Jessup, Md., is one of the distribution facilities slated to join Ahold Delhaize USA's self-managed network next year.Ahold Delhaize USA

Next year, Ahold Delhaize USA expects to transition six facilities under its three-year initiative to switch to a fully integrated, self-distribution model.

Plans call for distribution facilities in Assonet, Mass., (Freetown Fresh and Freetown Grocery); Jessup, Md.; Carlisle, Pa.; Manchester, Conn.; and Mauldin, S.C., to become part of the self-managed network in 2021, a spokeswoman for Ahold Delhaize USA’s Retail Business Services (RBS) arm said.

The Mauldin distribution center is in the process of being acquired by Ahold Delhaize USA’s Food Lion chain as part of the purchase of 62 Bi-Lo and Harveys Supermarket stores from Southeastern Grocers, announced in June. According to RBS, the Mauldin DC’s migration to the self-distribution network is pending Federal Trade Commission approval of the acquisition. The transaction is expected to be finalized in the first half of 2021.

With the transition of the six facilities in 2021, about 65% of Ahold Delhaize USA brand center-store volume will be self-distributed, the RBS spokeswoman reported. The remaining volume is slated to enter the self-managed network by the end of 2023.

Food_Lion-distribution_truck.jpg

By 2023, Ahold Delhaize USA's distribution network is expected to expand to 23 traditional and e-commerce DCs from 16 facilities currently.

In December, Ahold Delhaize USA unveiled a three-year, $480 million plan to expand its supply chain operations and shift to self-distribution, including e-commerce channels. The effort includes the construction of two new frozen warehouses (Plainville, Conn., and Mountville, Pa.) plus the acquisition of three warehouses (two in York, Pa., and one in Chester, N.Y.) from C&S Wholesale Grocers and new leases for a recently renovated warehouse in Manchester, Conn., and a C&S facility in Bethlehem, Pa. Keene, N.H.-based C&S has supplied some Ahold Delhaize USA brands. RBS has partnered with C&S to provide supply chain services during the transition to self-distribution.

Related:Ahold Delhaize USA taps Americold for new automated frozen warehouses

Ahold Delhaize USA said its distribution network will expand to 23 facilities by 2023. It now includes 16 traditional and e-commerce distribution centers, which supply 1,971 stores across the East Coast — under the Stop & Shop, Giant/Martin’s, Giant Food, Food Lion and Hannaford banners — as well as fulfill more than 6 million annualized online grocery orders.

The company is working with with cold storage provider Americold to build the two automated frozen warehouses. The Plainville facility will serve Stop & Shop and Hannaford stores in the Northeast and New England, and the Mountville warehouse will serve the Giant Food, Giant/Martin’s and Food Lion chains in the Mid-Atlantic. Plans call for the new facilities to go into operation by the fourth quarter of 2022.

Related:Ahold Delhaize USA plans major supply-chain expansion

With the augmented distribution network, the U.S. grocery brands will have coverage from Maine to Georgia, according to Zaandam, Netherlands-based parent company Ahold Delhaize. The global food retailer noted that the investment will bring the infrastructure to support its U.S. omnichannel growth strategy. In 2020, online grocery capacity is slated to be expanded by 70% in the U.S., where same-day delivery will be added to over 600 Stop & Shop and Food Lion stores and the number of pickup sites is expected to grow from 765 at the close of the second quarter to 1,100 by the fiscal 2020 year-end.

In August, Ahold Delhaize reported that U.S. online sales jumped 127% for the second quarter ended June 28. The sharp growth now has the company projecting a more than 75% increase on U.S. online sales for fiscal 2020, up from its previous estimate of more than 50% and initial forecast of over 30%.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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