Ahold Delhaize USA selects AutoStore tech for micro fulfilment pilot

Ahold Delhaize, the third largest grocery retailer in the US, is to build an automated e-commerce fulfilment centre in Philadelphia.

This will be able to prepare 15,000 online delivery orders a week for customers of its Giant Direct business.

The facility will leverage AutoStore microfulfilment technology via a Swisslog solution, and will also tap manual picking capabilities courtesy of Ahold Delhaize’s Peapod Digital Labs initiative.

“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,” says JJ Fleeman, President at Peapod Digital Labs and Ahold Delhaize USA’s Chief E-commerce Officer.

“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 optimise pickup and delivery.”

“We’re excited to kick off this pilot with The Giant Co. and Swisslog as we continue to build out e-commerce fulfilment capabilities, which we believe will be key in supporting continued omnichannel growth.”

Albertsons and Instacart must follow suit

“I strongly advise Albertsons and other grocery retailers to review the decision by Ahold Delhaize,” says Brittain Ladd, a supply chain consultant and former Amazon exec.

“Ahold Delhaize could have chosen any number of micro-fulfilment systems but AutoStore was the clear winner.”

He adds: “I anticipate that Instacart will be the next major retailer to introduce AutoStore into its ecosystem”

Introducing 50 to 80 micro-fulfilment centres will allow the company to eventually become an online grocery retailer fulfilling direct to its customers, Ladd argues.

“I believe that Instacart will eventually open its own stores. It cannot maintain the status quo,” he concludes.