102-year-old grocery store chain shutters key customer facilities

The grocery store sector is feeling the effects of inflation, as food prices in August rose faster than the all-items Consumer Price Index, according to the U.S. Department of Agriculture Economic Research Service.That means food prices were rising higher than the rate of inflation, which was 3% in September, but we don't know for sure because of the October government shutdown.Grocery stores have no data to consider after August, as the government shutdown halted the USDA's Food Price Outlook publications in October, and it won't be updated through the end of the year, according to its website.Food prices rose 0.3% higher than inflation in August The all-items CPI rose 2.9% in August 2025 from the same period in 2024, according to the USDA website, but the Food Prices CPI rose 3.2% higher in August 2025 compared to August 2024.The USDA won't release another Food Price Outlook update until Jan. 23, 2026, the website said. Grocery store chains might not have seen the recent government statistics, but they were likely paying higher prices for products from their suppliers, and it hit some of them hard.Higher prices can discourage consumers from purchasing extravagant items they can probably do without and can result in customers being more selective with the products they do purchase.In many cases, customers might exit the grocery store with fewer items than they might have normally purchased, which can decrease grocery company revenue and profits.Albertson's eliminated jobs and stores Economically challenged grocery chains have needed to cut costs by closing stores and laying off employees. Albertson's eliminated over 380 jobs at corporate offices in Arizona and California this year, BoiseDev reported. Albertsons will close a net 20 stores by the end of 2025.Kroger revealed in November that it will close 9 fulfillment centers located in Pleasant Prairie, Wis.; a combination Kroger/Harris Teeter facility in Frederick, Md.; Nashville; Oklahoma City; Groveland, Rockledge, Tampa, and Jacksonville, Fla. The grocery chain owner will also close a Harris Teeter fulfillment center in Franconia, Va.The closures will affect almost 1,700 jobs."In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value," Kroger's interim CEO Ron Sargent said in a memo reported by Reuters. Kroger closing fulfillment centers:Kroger facility in Pleasant Prairie, Wis.Kroger facility in NashvilleKroger facility in Oklahoma CityKroger facility in Groveland, Fla.Kroger facility in Rockledge, Fla.Kroger facility in Tampa, Fla.Kroger facility in Jacksonville, Fla.Kroger/Harris Teeter facility in Frederick, Md.Harris Teeter facility in Franconia, Va."With the Kroger-Albertsons merger off the table, Kroger is moving to reset its cost base and streamline operations," Arun Sundaram, analyst at CFRA Research, said, according to Reuters.

The Giant Company and Giant Food supermarket chains are closing six centralized e-commerce fulfillment centers. S Giant Food closes fulfillment centersAnd now, grocery store owner Ahold Delhaize USA has revealed that its Giant Food and The Giant Company supermarket chains will close six centralized e-commerce fulfillment centers located in Pennsylvania and Virginia, as the grocery chains transition to a local, store-first fulfillment network.Giant Food will close its Manassas, Va., facility, and Giant Company will shut fulfillment centers in Philadelphia, Willow Grove, Coopersburg, North Coventry, and Lancaster, Va., Ahold Delhaize said in a statement.Giant Food and The Giant Company will continue to operate the facilities into early next year, with most closures expected to occur by the end of the first quarter of 2026, the company said."The difficult decisions to close these facilities were made after carefully considering customer trends and preferences for home delivery, where customers are increasingly expecting fast delivery, more assortment, and delivery availability to meet their preferences," the statement said.Ahold Delhaize grocery chains have transitioned to a local, store-first network in recent years to offer greater customer availability at faster speeds, which was made possible by key technological improvements and contributions from partners and team members.Chains continue working with Instacart, DoorDashWhile continuing to offer in-store fulfillment of customers' e-commerce orders for pick-up and delivery, the grocery chains will continue working with third-party fulfillment partners, including Instacart and DoorDash for delivery.Using these fulfillment options, each of the U.S. brands is best positioned to deliver on customers' expectations for quick pick-up and delivery, and, where possible, in as little as 30 minutes, the company said.Giant issues WARN noticesAhold Delhaize sent 60-day Worker Adjustment and Retraining Notification notices to 90 Giant Delivery employees on Dec. 12 for the Manassas facility, which will close Feb. 10.The company also sent 60-day WARN notices to 128 affected Giant Company employees at the Philadelphia facility that will close on Feb. 13.Affected employees will be offered other positions within their respective company or have the opportunity to apply for open positions.More closings:Casual Mexican restaurant chain closes more locations79-year-old national trucking company closes down, no bankruptcy65-year-old Home Depot rival shutters business permanentlyThe grocery company will take an estimated $35 million non-cash impairment charge for the closure of the five Giant Company facilities. It will take an estimated $15 million non-cash impairment charge for the closure of the Giant Food Manassas facility.Ahold Delhaize USA operates five grocery brands, including Giant Food, The Giant Company, Food Lion, Hannaford, and Stop & Shop, which comprise the largest retail group on the East Coast and fourth largest in the U.S., serving about 26 million customers each week, the company said.Ahold Delhaize grocery chainsGiant FoodThe Giant CompanyFood LionHannafordStop & ShopRelated: Popular pizza and beer brand closes locations after bankruptcy