After closing over 30 underperforming stores last year, Ahold Delhaize-owned Stop & Shop is continuing its streamlining efforts. This time, it is targeting its e-commerce business and making even more cuts to its real estate portfolio.
The grocery chain announced it will close seven of its “warerooms” across four states, part of a broader strategy to optimize operations and cut costs.
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Stop & Shop's warerooms are fulfillment hubs where products are stored for online orders. The grocery chain currently operates over 20 warerooms, many located near retail stores. They typically range from 8,000 to 10,000 square feet, each holding about 8,000 items.
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Stop & Shop wareroom locations shutting down
- Norwalk, Connecticut
- Windsor, Connecticut
- East Northport, New York
- Riverhead, New York
- Revere, Massachusetts
- Whitman, Massachusetts
- North Providence, Rhode Island
Despite the closures, Stop & Shop says customers won't see any disruptions in e-commerce orders. In fact, the company plans to expand its same-day pick-up and delivery options and offer a broader range of products.
“Stop & Shop will continue to offer online pickup and delivery to all local customers after the facility closures, and we look forward to delivering an even better omnichannel customer experience with more options for same-day pickup and delivery, plus an even broader assortment of products,” a Stop & Shop spokesperson said.
As for the affected employees, Stop & Shop says it is working with union representatives to provide them with other job opportunities within the company.
Stop & Shop shifts e-commerce strategy to boost growth
Stop & Shop's decision to close these warerooms is part of an effort to optimize its e-commerce operations.
Like many grocers, Stop & Shop (ADRNY) expanded its online ordering infrastructure during the Covid pandemic to provide more options for consumers and meet the surge in online grocery demand. It deepened its partnership with Instacart and increased the number of fulfillment centers.
Now, instead of relying on separate fulfillment facilities, the company plans to shift order processing directly to its retail stores. It believes this strategy will be more efficient and cost-effective without sacrificing service quality.
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This change in its strategy aligns with a broader consumer trend.
According to Capital One Shopping, U.S. online grocery sales increased 104% during the pandemic, and are projected to grow at an annual rate of 12.3% through 2029.
In 2025, around 148.4 million Americans, nearly 52% of the population, are expected to buy groceries online.
Stop & Shop transforms its business to win back customers
The wareroom closures follow a larger transformation at Stop & Shop.
In addition to closing underperforming stores, the company has been remodeling locations since 2018, with 119 stores upgraded to date. The company claims these renovated locations consistently outperform non-renovated ones.
Stop & Shop has also cut prices on thousands of products across multiple stores and added kiosks that make printing and activating digital coupons easier for customers, aiming to drive loyalty and market share growth in the U.S.
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All these efforts led the company to achieve e-commerce profitability on a fully allocated basis for the second quarter of 2025, along with a 14.4% increase in online sales, marking the fifth consecutive quarter of double-digit growth.
“Our focus on striking the right balance between investing in growth and creating opportunities to drive operational excellence continue to fuel the positive outlook for our company,” said Ahold Delhaize CEO Frans Muller in a statement.
“I am confident we are well prepared to navigate the complexities of the current business environment and position the company to drive brand strength and market share growth in the coming periods.”
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