Grocery distributor to expand, transform U.S. supply chain

Grocery distributor Ahold Delhaize USA will invest $480 million over three years to expand and transform its supply chain, the company said earlier this month. The investment includes new facilities and technology to support aggressive omnichannel growth plans for its U.S. brands, which include Stop & Shop, Peapod, Hannaford, Food Lion, and others, company officials said.

Plans include transitioning the company to a self-distribution model and the addition of seven new and acquired warehouses, including the construction of two fully automated frozen facilities on the East Coast, one serving the Northeast and one serving the Mid-Atlantic region.

"Today's announcement is another example of how Ahold Delhaize USA is transforming our infrastructure to support the next generation of grocery retail," company CEO Kevin Holt said in a statement. "Through this initiative, we will modernize our supply chain distribution, transportation, and procurement through a fully-integrated, self-distribution model, that will be managed by our companies directly and locally. This will result in efficiencies and most importantly product availability and freshness for customers of our local brands—now and in the future—whenever, wherever, however they choose to shop."  

Ahold Delhaize USA has 15 traditional and e-commerce distribution centers that service its brands, and will grow that network to 22 facilities by 2023, the company said. To date, the firm has partnered with C&S Wholesale Grocers to service some of its U.S. brands, and the company says it will continue that partnership during its transition to a self-managed distribution network. The company has acquired three C&S warehouse facilities as part of the expansion investment, as well.

Ahold Delhaize USA has roughly 2,000 retail stores and is the largest grocery retail group on the East Coast and the fourth largest group in the nation, according to the company.