The national pharmacy chain Rite Aid Corporation announced plans to build a 900,000 square-foot distribution center in Spartanburg County.
The new distribution center will employ nearly 600 people after it becomes fully operational next year. The company said the center will support the inventory and fulfillment needs of approximately 1,000 Rite Aid stores in the southeastern U.S. The $90 million Spartanburg center will be Rite Aid’s first new distribution facility in 15 years.
“Rite Aid’s decision to build a new distribution center in Spartanburg County is a tremendous reason to celebrate,” Governor Nikki Haley said in a statement. “This $90 million investment that will create hundreds of jobs in the Upstate will make a real difference in the local community. We welcome Rite Aid to the South Carolina family and look forward to watching them succeed here for many years to come.”
Rite Aid had announced plans to consolidate three existing centers into a single facility after a comprehensive review of its supply chain and logistics network last year. The existing centers located in Tuscaloosa, Ala.; Charlotte, N.C.; and Poca W.Va., will be combined into the Spartanburg center, as part of the company’s efforts to improve operating efficiency.
“Spartanburg is an ideal location for our new distribution center,” John Standley, Rite Aid chairman and CEO, said in a statement. “We thank the state of South Carolina for their 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.”
The Coordinating Council for Economic Development 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.
Added South Carolina Secretary of Commerce Bobby Hitt, “Having such a successful, nationally recognized company, like Rite Aid, select South Carolina for a major distribution operation is a testament to the business-friendly reputation our state has earned. Congratulations to Rite Aid and Spartanburg County on this exciting news.”
Rite Aid is working with Spartanburg real estate development firm Johnson Development Associates on the project. 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 and operates 95 stores in South Carolina.
Rite Aid Corporation (NYSE: RAD) is one of the nation’s largest drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2014 annual revenues of $25.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.