WSJ News Exclusive | Safeway Owner, Rival Grocers Bet on Smaller Warehouses

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WSJ News Exclusive | Safeway Owner, Rival Grocers Bet on Smaller Warehouses
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Grocer Albertsons, owner of the Safeway chain, is adding small fulfillment centers to get closer to customers and fill online orders faster

Food retailers are making big bets on small warehouses to bulk up their growing delivery businesses, as supermarkets try different approaches to get groceries to customers more efficiently.

Albertsons Cos., Walmart Inc. and other chains are building small fulfillment centers near existing stores and customers to quickly fill orders placed online. More grocers are choosing this strategy over the larger, remote distribution centers that Kroger Co. and Koninklijke Ahold Delhaize NV’s Peapod division are building to make deliveries...

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