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Giant Food of Landover, Md. (Giant-Landover), said yesterday it would enter into a tentative agreement to transfer its dry grocery business, including operations in Jessup, Md., to Jessup Logistics, LLC, an affiliate of Keene, N.H.-based C&S Wholesale Grocers. The transfer arrangements are expected to be worked out in the next 90 days, with the transfer likely to take place by the end of this year.
After careful study of its distribution network, Giant-Landover, a division of Ahold USA, decided that the transfer would streamline its supply chain and enable it to concentrate on the sourcing and supply of fresh food operations. The division’s stores and shoppers will experience no changes in service, quality or product selection, according to the chain.
“This move is designed to better position our supply chain network to be more efficient and flexible while still offering superior value and quality to our customers,” noted Giant-Landover president Robin Michel.
Under the agreement, Jessup Logistics will adopt the Jessup dry grocery warehouse labor agreements with the same terms and conditions as the agreements that Giant-Landover currently has in place with Locals 730, 922 and 1486, which cover unionized associates at the facility.
By teaming with Jessup Logistics, Giant-Landover, which operates 180 supermarkets in Virginia, Maryland, Delaware, and the District of Columbia, and employs about 22,000 associates will be able to employ C&S’ procurement and logistics network.