SPARTANBURG, S.C. — Rite Aid Corp. (NYSE: RAD) plans to build a 900,000-square-foot distribution center in Spartanburg, S.C. The $90 million project will be Rite Aid’s first new distribution facility in 15 years.
“Spartanburg is an ideal location for our new distribution center,” says John Standley, Rite Aid chairman and CEO. “We thank the state of South Carolina for its cooperation and support during our site selection process and we look forward to breaking ground on our new facility, which will help us to further optimize our supply chain and better serve our stores and customers across the Southeast.”
Rite Aid is working with Johnson Development Associates, a leading real estate development firm based in Spartanburg, on build the project. Construction will begin in March and Rite Aid will start shipping to stores in March 2016. The new distribution center will employ nearly 600 people after it becomes fully operational and will support the inventory and fulfillment needs of approximately 1,000 Rite Aid stores in the southeastern United States.
In April 2014, after a comprehensive review of its supply chain and logistics network, Rite Aid announced it would consolidate three of its existing distribution centers, located in Tuscaloosa, Ala.; Charlotte, N.C.; and Poca W.Va., into one new facility, as part of its ongoing efforts to improve operating efficiency across the company.
Information on employment opportunities at Rite Aid’s new facility in Spartanburg will be made available in the second half of 2015. Currently, Rite Aid employs nearly 1,400 workers and operates 95 stores in South Carolina. The drugstore chain currently operates 4,600 stores in 31 states and the District of Columbia.
The Coordinating Council for Economic Development, under the auspices of the South Carolina Department of Commerce, approved job development credits related to the project. Additionally, the South Carolina Power Team, in conjunction with Broad River Electric Cooperative, committed a $550,000 grant for infrastructure in support of the project.
Rite Aid’s stock price closed at $7.58 per share on Tuesday, Jan. 14, up from $5.43 per share a year ago.
— Danielle Everson