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Grocery giant rethinks supply chain plans as store closures mount

One of America’s largest grocery retailers is changing course after years of expanding its business and investing in the infrastructure behind it. The company has made a series of moves that could reshape its footprint, even as it continues to grow in some areas of its business. The latest decision comes as retailers across the […]

One of America’s largest grocery retailers is changing course after years of expanding its business and investing in the infrastructure behind it.

The company has made a series of moves that could reshape its footprint, even as it continues to grow in some areas of its business. The latest decision comes as retailers across the industry face growing pressure to determine where their investments make the most sense.

The retailer is Ahold Delhaize USA, which operates more than 2,000 stores across its Giant Food, Hannaford, Stop & Shop, Food Lion, and The Giant Company banners.

Ahold Delhaize USA plans to sell two distribution facilities

Ahold Delhaize USA (ADRNY) and supply chain solutions company Americold Realty Trust agreed on July 21, 2026, to wind down operations at a distribution center in Lancaster, Pennsylvania, and to halt plans to open another facility in Plainville, Connecticut, according to an Americold Realty Trust filing with the Securities and Exchange Commission (SEC).

The grocery giant plans to continue operations at the Lancaster facility through the end of 2026, according to the filing.

Americold said it expects to record a non-cash impairment charge of approximately $305 million to $320 million for the two facilities, which it plans to sell.

“There are no changes to facility operations at this time, and any changes will be communicated well in advance of those changes,” a spokesperson for the Pennsylvania distribution center told Supermarket News.

“We remain appreciative of the continued partnership with Americold and look forward to continuing to work closely with Americold in the future.”

The decision represents a change from Ahold Delhaize USA’s earlier supply chain plans.

In 2020, the company announced plans to expand its cold storage capacity with Americold by building two fully automated frozen warehouses as part of a broader effort to transform its supply chain and move toward a fully integrated, self-distribution model.

“Americold is a leading expert in this space, and we’re confident in their abilities to build state-of-the-art facilities that will meet our needs and serve our omnichannel growth strategy,” said then-Executive Vice President of Supply Chain for Retail Business Services, the services company for Ahold Delhaize USA, Chris Lewis, in a statement confirming the expansion.

“Today’s announcement continues to reinforce how Ahold Delhaize USA is transforming our infrastructure to support the next generation of grocery retail,” Lewis added.

Ahold Delhaize USA store closures

The supply chain changes follow Ahold Delhaize USA’s continued reduction of its physical footprint through store closures, particularly at its Stop & Shop banner.

Stop & Shop previously revealed plans to close 32 underperforming stores as the company worked to reposition the business for future growth.

The latest shutdowns include:

  • New Jersey: Two Stop & Shop stores in Basking Ridge and Westfield are expected to close in early fall 2026, according to NJBIZ.
  • Connecticut: A Stop & Shop location on East Main Street in Clinton is expected to close in October 2026, CTInsider reported.
  • New Jersey: A Stop & Shop store on Lakewood Road in Toms River closed in late spring 2026, Asbury Park Press confirmed.
  • Four states: Seven Stop & Shop wareroom locations closed during 2025, TheStreet reported.
Ahold Delhaize USA halts its distribution center expansion amid store closures.

Boston Globe / Getty Images

Why Ahold Delhaize USA is changing its footprint

The latest moves come as grocery retailers across the industry rethink their physical footprints amid changing shopping habits, rising operating costs, increased competition, and the continued growth of online shopping.

For Ahold Delhaize USA, however, the changes are taking place alongside continued growth in its digital business.

Here’s some of my previous coverage of store closures:

The company reported that net sales rose 1.4% year over year during the second quarter of 2026, while comparable sales, excluding gasoline, increased 0.8%.

Online sales were an even stronger part of the company’s performance, climbing 14.5% and marking the ninth consecutive quarter of double-digit growth.

The results suggest that the company’s decision to close certain physical locations or reconsider distribution capacity should not necessarily be viewed as a sign that its broader grocery business is shrinking. Instead, the moves highlight how retailers are adjusting where and how they invest as consumer demand changes.

Research also suggests that store closures can have a lasting effect on where consumers shop.

Marketing Science Institute researchers Qiaoni Shi, J. Jeffrey Inman, and Dinesh Gauri found that shoppers can be reluctant to switch to another retailer format after their preferred supermarket closes. Their findings underscore the importance of building store loyalty before a location is ultimately shut down.

That dynamic makes decisions about which stores and facilities to retain particularly important for large grocery retailers.

For Ahold Delhaize USA, the latest move shows that its strategy is evolving beyond deciding which stores remain open. The company is also rethinking the distribution infrastructure needed to support its business.

Related: Major grocery chain resumes store closures in 2026

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