Giant’s online orders won’t be delivered by the grocery store’s employees anymore
The company is retreating from e-commerce fulfillment centers as it aims to get faster with online order deliveries.
Giant is changing how it handles online orders as customers demand fast grocery delivery.
The supermarket chain, which got its start in 1923 in Carlisle, Cumberland County, is closing five e-commerce fulfillment centers in Pennsylvania as it transitions to a new business model.
“We’ve learned over the past few years that there isn’t a one-size-fits-all approach to our e-commerce business, particularly our fulfillment model,” said company spokesperson Ashley Flower. “With customers expecting faster delivery, we need to ensure we are operating as efficiently as possible to meet their ever-changing needs.”
Under the new model, Giant employees will select the items for customers’ orders at Giant stores, instead of fulfillment centers, and the groceries will then be delivered by Instacart or DoorDash instead of GIANT Direct drivers.
The company will transition to the new model by the end of April and customers can continue to place their orders through the Giant app, said Flower.
The new model is intended to allow faster delivery, more product variety, and one-hour delivery windows, said Flower.
Customers will also be able to make changes to their orders closer to the scheduled delivery time.
During the pandemic, more consumers turned to online shopping for their groceries. Today, consumers in the Philadelphia area are able to shop from several supermarkets through the Instacart and DoorDash digital platforms, including ShopRite, Aldi, and Sprouts. Customers have been able to shop for Giant groceries with third-party providers prior to the announced e-commerce model change.
Giant will close its five area fulfillment centers, Flower said. They are at: 3501 Island Ave. in Philadelphia, 315 N. York Rd. in Willow Grove, 216 E. Fairmont St. in Coopersburg, 86 Glocker Way in Pottstown, and 235 N. Reservoir St. in Lancaster.
Some fulfillment centers share their address with a supermarket site but are not accessible to shoppers at those locations. At those sites, the fulfillment center will close, but there will be no change to store operations, said Flower.
The e-commerce facilities employ 493 workers, who will be offered “equivalent jobs within our stores, with the same pay and benefits.” But drivers who take on a new position at a store will no longer receive tips, noted Flower.
When Giant’s 124,000-square-foot Southwest Philadelphia fulfillment center opened in 2021, it allowed the company to expand online order delivery to South Jersey. That was part of a $114 million expansion.
Meanwhile, Giant has been expanding its store footprint with a new South Philly location opening in 2024, and a Jenkintown supermarket in 2025.
“E-commerce remains an important segment of our business strategy and key to our future omnichannel growth,” said Flower. “We remain committed to providing an outstanding experience to our customers by offering speedy delivery, more delivery windows, broad product assortment, and value.”