Ahold Delhaize USA’s digital, e-commerce, and commercial engine, Peapod Digital Labs, along with The Giant Co., is piloting micro-fulfillment technology at an e-commerce fulfillment center in Philadelphia. This is part Ahold Delhaize USA's continued expansion of its e-commerce capabilities in support of a stronger omnichannel supply chain. The pilot is expected to fulfil about 15,000 online orders weekly for delivery to customers’ homes.
“Over the past year, all Ahold Delhaize USA companies have seen a tremendous increase in online sales growth, and we believe this growth is here to stay,” said JJ Fleeman, president of Peapod Digital Labs and chief e-commerce officer, in a statement. “As we think about shifting consumer expectations and the future of omnichannel shopping, we must continue to build and evolve our already strong infrastructure to optimize pickup and delivery. We’re excited to kick off this pilot with The Giant Co. as we continue to build out e-commerce fulfillment capabilities, which we believe will be key in supporting continued omnichannel growth.”
“This pilot is an exciting milestone in The Giant Co.’s omnichannel evolution as we work to transform the online grocery experience for our customers,” said Nicholas Bertram, president of The Giant Co., in a statement. “As we continue to see incredible demand for Giant Direct across the Philadelphia region, incorporating this state-of-the-art technology will not only bolster our overall e-commerce platform for future growth, but also significantly increase our operating capacity, allowing us to deliver a faster, best-in-class experience to more customers each week.”
Additional micro-fulfillment pilots will be announced in the coming months. As of March 1, Ahold Delhaize USA will have 18 self-managed traditional distribution centers, 28 EFCs, and more than 1,100 click-and-collect locations. By 2023, the network is expected to increase to more than 27 distribution centers, with further EFC and click-and-collect growth.
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Image: Ahold Delhaize USA