Giant Opens New E-Commerce Fulfillment Center in Philadelphia

 By Javon Roach CoStar Research

The Giant Co. has opened a new Giant Direct e-commerce fulfillment center at 3501 Island Ave. in Philadelphia. The facility is set to serve more customers in Philadelphia and, for the first time in its 98-year history, in southern New Jersey.

The 124,000-square-foot facility features state-of-the-art technology, such as robotics, machine learning and vertical integration, according to Giant, which notes it is the first Ahold Delhaize USA company to implement this new fulfillment technology. Within the facility, two space-saving, 3D grids contain totes filled with fresh and non-perishable groceries. When a customer places a Giant Direct order, employees work alongside a team of robots that quickly gather items for bagging. After bagging, the employees place orders into temperature-controlled totes and onto trucks for delivery to customers.

The facility includes a selection of products that mirrors a traditional Giant store, stocking more than 22,000 items, to help meet increasing demand. The center is expected to fulfill up to about 15,000 home delivery orders per week, according to Giant.

"The opening of this facility is an exciting step forward as we continue to collaborate to evolve the supply chain network for the future," Ahold Delhaize USA Supply Chain President Chris Lewis said in the announcement. "Solutions like micro-fulfilment centers will be an important part of the self-distributed network, positioned to serve customers whenever, wherever, however they want to shop."

Starting Nov. 16, the facility will also provide Giant Direct delivery to the South Jersey towns of Camden, Cherry Hill, Gibbsboro, Haddonfield, Marlton, Medford, Mount Laurel and Voorhees. Giant plans to introduce Giant Direct to additional South Jersey towns over the next several months.

The new Giant Direct Philadelphia facility currently employs 125 workers. Giant is looking to hire an additional 125 workers with the busy holiday season approaching.

The Giant Direct brand was launched in February 2019 when Giant opened its first e-commerce hub in Lancaster. Giant now has more than 150 pickup locations and customers across 90% of the company's footprint have access to online grocery ordering and delivery services. Giant also launched Choice Pass earlier this year to its Giant Direct customers, providing unlimited free delivery and pickup for $98 a year.

Giant's new facility bolsters its presence in Philadelphia, which is set to grow from one store in 2018 to 10 by the end of 2023. In addition to three Giant Heirloom Markets and its new Philadelphia flagship Riverwalk store, Giant will open a new store on Cottman Avenue on Nov. 12, followed by a Giant on Columbus Boulevard and a Heirloom Market in the Fashion District by the end of the year.

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