Ahold Delhaize USA has announced that it will invest $480 million to expand and transform its supply chain operations in the US East Coast.
The investment is part of the retailer's new three-year strategy to transform its supply chain in the US to a fully-integrated, self-distribution system.
The new system will enable US businesses to reduce costs, improve speed to shelf, enhance relationships with vendors, and offer more fresh products to customers, the retailer said.
'Product Availability'
Kevin Holt, chief executive of Ahold Delhaize USA, said, "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."
The funds will be used by the retail giant in acquiring three distribution centres from C&S Wholesale Grocers and leases on two additional facilities.
It will also invest in constructing two new fully automated facilities for frozen items in the Northeast and Mid-Atlantic regions.
The impact of this investment on the underlying operating income for Ahold Delhaize USA, excluding transition expenses, will be neutral in 2020 and 2021.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
