Retailer Ahold Delhaize USA has announced that it will invest $480 million over the next three years to expand and upgrade its supply chain on the East Coast of the US.
A statement from the company claims that the three-year investment plan aims to develop the company’s US supply chain into a fully integrated, self-distribution model.
As part of this three-year strategy, the retailer will acquire three distribution facilities from C&S Wholesale Grocers, lease two additional facilities, and construct two new fully-automated frozen facilities in the Northeast and Mid-Atlantic of the US.
According to Ahold Delhaize, the upgraded self-distribution US supply chain will enable its US businesses to reduce costs, improve speed to shelf, enhance relationships with vendors, and improve product availability and freshness for customers.
Currently, the retailer’s US distribution network includes 15 distribution centres, which serve its supermarket chains including Food Lion, Stop & Shop and Giant Food, as well as its online grocery arm Peapod.
The US is the retailer’s biggest market, as the company operates over 2,000 stores in the country. Collectively, these stores and the company’s e-commerce operations generated over $44 billion in revenue in 2018.
Kevin Holt, CEO of Ahold Delhaize USA, said: “Today’s announcement is another example of how Ahold Delhaize USA is transforming our infrastructure to support the next generation of grocery retail.
“Through this initiative, we will modernise 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.”