Ahold Delhaize USA, the parent company of the Giant, Giant Martin’s, Food Lion, Hannaford and Stop & Shop supermarket chains, announced that it plans to invest $480 million in its supply chain operations over the next three years. Ahold’s plan includes the acquisition of three warehouses from C&S Wholesale Grocers (two in PA and one in NY), and the construction of two fully automated frozen facilities in the Northeast and Mid-Atlantic.
C&S Wholesale Grocers has been serving as a supplier for select Ahold Delhaize USA brands.
Ahold’s distribution network in the U.S. currently consists of 15 traditional and e-commerce distribution centers. That network could expand to 22 facilities by 2023.
“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,” said Kevin Holt, CEO of Ahold Delhaize USA. “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 operates nearly 2,000 supermarkets and distribution centers across 23 states. According to the company, its supply chain operations include more than 1,000 trucks that travel over 120 million miles annually and deliver 1.1 billion cases to its stores.