The Baltimore Sun reports that Ahold Delhaize-owned Giant Food “is upending how it delivers groceries, switching to a localized model that uses store workers and third-party delivery services and shutting down a home delivery service warehouse in Hanover (Maryland).
According to the story, “plans to introduce its new delivery operation in the coming weeks to meet consumer demand for faster delivery, more delivery time slots and a broader assortment. As a result, Giant will close delivery facilities in Hanover and Milford, Delaware, by Oct. 21, consolidating Giant Delivers at a facility in Manassas, Virginia.”
The Washington Business Journal notes that it was just a month or so ago that Giant said it would close the Manassas food delivery warehouse along with two others.
“We made the announcement, and then, as we looked at what this new model would be, this is what the best model is to provide faster delivery, more delivery time slots, and a broader assortment,” says Giant spokesman Jonathan Arons.
KC’s View:
When I read this story, a Jimmy Buffett line came to mind:
“Indecision may or may not be my problem.”
Someone should correct me if I’m wrong on this, but it strikes me that Giant Food and some of the other Ahold Delhaize-owned banners have been remarkably indecisive about how to best serve the c-grocery marketplace.
Remember, this is a company that owned Peapod, which was one of the first e-grocery models and that had a viable brand name and value proposition, even if I think they didn’t do a very good job of building that brand and exploiting its possibilities. Companies like Walmart, Kroger, Target and Amazon all are making moves, and while one can agree or disagree with their choices, you can’t accuse them of being indecisive.
I don’t have much personal exposure to Giant Food, but I have several Stop & Shop stores near me, and they, quite frankly, do a terrible job of marketing themselves to local communities. They’ve done almost nothing to try and get me to shift my shopping choices to their stores (which would be tough, to be honest, since their stores are barely mediocre). And their marketing of e-grocery services has been kind of non-existent.
This week Giant Food is switching to a localized delivery model. But would it be a bad bet to suggest that within 18 months it could switch back to a centralized model?
To be clear, changing strategies when the fact demand it is a capacity to be admired. But man, sometimes it seems like Giant and Stop & Shop change directions every time there is a stiff breeze.
As I say, correct me if I’m wrong on this.
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