Landover, Maryland-based Giant Food will close home grocery delivery fulfillment centers in Hannover, Maryland, Manassas, Virginia, and Milford, Delaware, though the grocery chain will continue home delivery using a different distribution model.
The closures impact roughly 400 jobs. Giant said that number could change depending on how many employees apply for and are hired for other jobs within the company.
The 80,000-square-foot Manassas fulfillment facility opened just three months ago.
“Our mission is to meet the changing needs of our delivery customers who are increasingly looking for faster delivery, more delivery time slows and a broader assortment,” A Giant spokesman told WTOP said. “We are adapting our operating structure to better meet these needs and provide this important service for our customers through a localized fulfillment model.”
Order fulfillment in physical grocery store locations — either by company employees or third-party delivery workers — is common in the grocery industry, but Giant declined to comment on how home delivery orders will be filled going forward, saying it is working to finalize a fulfillment model that will best serve its customers.
Giant said grocery delivery remains an integral part of its omnichannel growth strategy, which also includes orders placed online and picked up by customers in-store.
In a letter to affected employees, Giant said it will end its central fulfillment Giant Delivers operation on or after Oct. 21. The same letter said Giant is experiencing rising costs to operate and its central fulfillment model does not allow it to efficiently meet customers’ changing needs.
Affected employees will have the opportunity to apply for other roles with Giant Food, the employee letter said.
