LANCASTER, Penn. - On February 12, a new e-commerce pickup and fulfillment facility for Giant Food Stores will open in Lancaster, Pennsylvania. According to Grocery Dive, the “38,000-square foot facility is being marketed under a new brand: Giant Direct, Powered by Peapod.”
The new facility will enable customers to pick up their online orders. Customers can also visit a walk-up counter to place their order via tablets. This will allow Giant to serve 40% more customers than the store it’s taking the physical place of.
It’s a smart move for Ahold Delhaize, a food retailer based in the Netherlands, that owns both Giant Food Stores and e-grocer Peapod. The facility can expand its reach of the Peapod brand and use it to deliver products to consumers.
The e-commerce hub is a part of a $22 million investment in the area, that will include four store remodels, a new fuel center and price investments. If this hub is successful, it would likely lead to the repurposing of unproductive grocery locations under the Ahold Delhaize brand around the country.
The company hopes that by 2020, 65% of its customers will have access to same-day delivery and store pickup. It also announced plans to double online net sales to $7.8 billion within the next three years.