In order to meet the inventory demand and fulfillment needs of approximately 1,000 stores, Rite Aid Corporation (RAD) plans to open a new distribution center in Spartanburg, SC. Located near the I-85 Corridor, the new 900,000 square foot distribution center will employ a staff of 600.
The new facility, which is the company’s first new distribution center in 15 years, involves an investment of $90 million and is expected to be fully operational by 2016.
This Pennsylvania-based company believes that the new strategically located Spartanburg distribution center will augment its supply chain and help in meeting store needs while catering to customers demands.
In Apr 2014, after carefully analyzing the supply chain and logistics network, Rite Aid decided to consolidate three of its its distribution centers located in Tuscaloosa, AL, Charlotte, NC and Poca, WV into one. The decision was in line with this Zacks Rank #1 (Strong Buy) company’s efforts to improve operational competence across the board.
Rite Aid, which operates nearly 4,600 stores in 31 states and the District of Columbia, is the nation’s third-largest drugstore chain in terms of store count, following Walgreens Boots Alliance Inc. (WBA) and CVS Health Corp. (CVS).
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