The fulfillment center, which opened in May in Manassas, Va., was originally opened with the goal of completing delivery orders in just three hours, according to Giant.
But now, Giant said it is in the midst of changing its operating structure and wants to use a localized, more efficient fulfillment model. Rising operating costs were another one of the reasons given for the closures. The other centers set to close are located in Hannover, Md., and Milford, Del.
Some 400 employees are set to lose their jobs as a result of the closures, but Giant said that number could go down if the displaced workers secure other positions with the company.
The Manassas fulfillment center was 80,000 square feet, employed around 200, and was equipped to handle 10,000 grocery deliveries a week.
Giant told WTOP that grocery delivery remains an integral part of its omnichannel growth strategy, but in a letter to impacted employees, the retailer said it was ending what it called its central fulfillment Giant Delivers operation on or after Oct. 21.
Giant has not said how it will serve customers during this transition but will provide updates when new delivery options are available.
Headquartered in Landover, Md., Giant operates 165 stores, with about half located in the Washington, D.C., area.