As it transitions to a fully integrated self-distribution supply-chain network, Ahold Delhaize USA has revealed that six distribution facilities are expected to move into the self-managed network in 2021, bringing self-distributed Ahold Delhaize USA brand center store volume to about 65%.
The remaining volume is expected to come into the self-managed network by the close of 2023, as the company noted last December, when it first unveiled its plans to transform and expand its U.S. supply-chain operations over the next three years by investing $480 million.
In a letter that Chris Lewis, EVP, supply chain at Ahold Delhaize’s Retail Business Services division, sent to suppliers regarding the update, he noted: “As we make these transitions, Ahold Delhaize USA companies are also striving to be your retailers of choice. Ahold Delhaize USA companies are taking steps to make the transitions as seamless as possible. This fall, we’ll be offering transition playbooks, checklists, key contact lists and more to ensure that our companies are working with you in the most effective way possible on these changes.”
The six facilities moving into the supply-chain network next year are Freetown Fresh, in Assonet, Massachusetts and Freetown Grocery, also in Assonet, along with distribution centers in Jessup, Maryland; Carlisle, Pennsylvania; Manchester, Pennsylvania; and Mauldin, South Carolina, the last location subject to Federal Trade Commission approval of Ahold Delhaize USA banner Food Lion’s purchase of 62 Bi-Lo stores from fellow southern regional food retailer Southeastern Grocers.
According to Lewis, the company currently has 17 self-managed distribution facilities, which will grow to 27 by the end of 2023.
Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize, is the parent company for Ahold Delhaize’s U.S. companies, consisting of Food Lion, Giant Food, The Giant Co., Hannaford, and Stop & Shop, as well as e-grocer Peapod; Retail Business Services, a U.S. support services company providing services to the brands; and Peapod Digital Labs, its ecommerce engine. Operating more than 2,000 stores across 23 states, Ahold Delhaize USA is No. 11 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in the United States. Jacksonville, Florida-based Southeastern Grocers is No. 34 on PG’s list.