SuperValu Invests $69 Million in Returning to Harrisburg Distribution Center
STILLWATER, MN - Tulips are not the only things returning this season. SuperValu has announced plans to return to its 3900 Industrial Road, Harrisburg, Pennsylvania, location, as it invests $69 million into the wholesale distribution center that will serve Northeastern customers. While the company announced in 2008 that this same distribution center would close by 2010 in an effort to consolidate into a Lancaster County facility, the new announcement of its reopening was made by Governor Tom Wolf.
The reopening of this distribution hub, which is nestled off Interstate 81 and next to the Norfolk Southern intermodal railyard, will hire 350+ people over the course of the next three years, a necessary move as the $16 billion in annual sales that the company currently has requires more space and people to accommodate its growth.
After selling the property for $30.3 million in 2008 to a private equity firm, the company purchased the 750,000-square-foot distribution center for a whopping $37.1 million last year, according to Dauphin County deed records. And after the purchase was completed, the company began renovation of the facility to begin shipping operations.
"Shipping for certain departments has already begun with additional departments coming online throughout the year," said External Communications and Public Relations Manager Mike Wilken, according to Central Penn Business Journal.
Minnesota-based SuperValu has gained funding from the Department of Community and Economic Development, including a $740,000 Pennsylvania First grant and a $166,500 allotment from WEDnetPA for employee training.
The new deal was facilitated by the Governor’s Action Team, professionals dedicated to Pennsylvania’s economic development who report to the governor.
"This speaks to the strength of the Harrisburg market as a distribution hub," said President and CEO of the Harrisburg Regional Chamber and Capital Region Economic Development Corp Dave Black, who added that this decision by SuperValu points to the region’s economic recovery. He expressed that, after economic trials 10 years ago, the region is seeing many businesses returning and investing in new facilities, including distribution centers like that of SuperValu’s.
The company currently distributes to 3,300+ stores throughout the country—3,100 of which are independent and franchise grocers, and 200 of which are grocery stores operating under any of the following banners: Cub Foods, Hornbacher’s, Shop ‘N Save, Shoppers, and Farm Fresh, which saw 21 stores recently depart.
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