Ahold USA said it was entering into an agreement to outsource its warehouse operations currently located in the Buffalo, N.Y., area to C&S Wholesale Grocers, which intends to consolidate activities there to its facilities in Bethlehem, Pa., and South Hatfield, Mass.
The impacted facilities include warehouses doing business under American Sales Co. that handle general merchandise, health and beauty and seasonal products located in Lancaster, N.Y., and Cheektowaga, N.Y. Approximately 600 ASC associates will be impacted by the closures. Full-time associates will be offered severance packages based on years of service, Ahold said.
The C&S facilities are more centrally located within the markets served by Ahold's retail divisions which include Giant-Landover, Stop & Shop New England, Stop & Shop New York Metro and Giant-Carlisle.
“Decisions to transfer facilities are not easy and we understand the concern that this change will cause for ASC associates and their families,” Jan van Dam, EVP of supply chain and e-commerce, Ahold USA, said in a statement. “We are committed to treating all associates affected by this decision in a fair and respectful way.”
Ahold USA expects the transition to be complete by August 2016.
C&S, headquartered in Keene, N.H., last year announced plans to take over the general merchandise warehouses of Safeway's Eastern Division with plans to base that business in Bethlehem. In December, C&S announced plans to expand its facilities there.
Ahold's Buffalo-area business dates to its previous ownership of the Tops Friendly Markets banner. Ahold sold Tops in 2007.
“ASC’s operations in the Buffalo area are strong, but they are no longer located within the markets served by Ahold USA’s retail divisions,” said van Dam. “Ahold USA continuously evaluates its business processes and supply chain to ensure that we are providing the highest level of service at the lowest cost for our local retail divisions and, ultimately, their customers.”
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