Ahold Delhaize USA has announced it will open an automated e-commerce fulfillment center (EFC) with The Giant Co. in Philadelphia with the capability to prepare 15,000 online delivery orders per week.

The new facility will use the AutoStore micro-fulfillment technology powered by Swisslog's SynQ software, along with manual picking technologies of Ahold Delhaize’s Peapod Digital Labs, the company’s digital, e-commerce and commercial engine.

The pilot launches as Ahold Delhaize companies continue to expand their e-commerce fulfillment capabilities in support of a stronger omnichannel supply chain.

"Over the past year, all Ahold Delhaize companies have seen a tremendous increase in online sales growth, and we believe this growth is here to stay," JJ Fleeman, President of Peapod Digital Labs and Chief e-commerce Officer said.

"As we think about shifting consumer expectations and the future of omnichannel shopping, we must continue to build and evolve our already strong infrastructure to optimize pick-up and delivery."

The EFC is planned to help meet customer demand in Center City and South Philadelphia.

“This pilot is an exciting milestone in The Giant Company’s omnichannel evolution as we work to transform the online grocery experience for our customers,” Nicholas Bertram, President of The Giant Company, said.

“Working with Swisslog to incorporate state-of-the-art technology like AutoStore will not only bolster our overall e-commerce platform for future growth but also significantly increase our operating capacity."

"We’re excited to kick off this pilot with The Giant Company and Swisslog as we continue to build out e-commerce fulfillment capabilities, which we believe will be key in supporting continued omnichannel growth," Fleeman said.

Applying the advantages of the AutoStore grid storage density and goods-to-person productivity gains in tandem with Peapod Digital Labs’ picking system will result in streamlined grocery e-commerce order fulfillment, according to the press release.

“Projects like this will change retail forever, and it's an honor to know our proven micro-fulfillment technology is providing Peapod Digital Labs and The Giant Company with the flexibility to build the infrastructure needed based on space and throughput rates of varying customer demand and order flow," Karl Johan Lier, CEO of AutoStore said.

“Swisslog is excited to work with Peapod Digital Labs and The Giant Company to leverage automation technology and expand their e-grocery fulfillment capacity to maintain the expectations of their consumers,” said Mitch Hayes, Vice President of E-commerce and Retail, Swisslog, Americas.

Additional micro-fulfillment pilots will be announced in the coming months.