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Rite Aid Opens New SC Distribution Center; Growth on Track

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Geared up to support the inventory and fulfillment needs of 1,000 stores in southeastern U.S., Rite Aid Corporation announced the opening of its new distribution center in Spartanburg, SC. The company had announced its plans to build the facility in Jan 2015. This also marks its first distribution center in 16 years..

Located at 789 Flatwood Industrial Drive in Spartanburg, the new distribution center is easily accessible as it is near the Interstate 85, between Highways 9 and 221. This facility will not only augment Rite Aid’s supply chain by meeting store needs but also assist in delivering solid customer experience. It will also enhance employment prospects in the state by creating about 600 new jobs. Currently, the company employs around 1,531 people in its 91 stores and distribution center in South Carolina.

The new 900,000 square foot distribution center will feature highly efficient fixtures, along with the latest technologies. Spread on an area of 97 acres, the facility will also house a 60,000 square foot office space including a cafeteria for employees, a fitness center and other amenities.

This Pennsylvania-based company had arrived at the decision to build this distribution center in South Carolina after a careful analysis and evaluation of its supply chain and logistics network that began in Apr 2014. Following the evaluation, Rite Aid decided to consolidate three of its distribution centers located in Tuscaloosa, AL; Charlotte, NC; and Poca, WV, into one. The decision was in line with the company’s efforts to improve operational competence across the board.

Rite Aid, which carries a Zacks Rank #4 (Sell), currently operates nearly 4,600 stores in 31 states and the District of Columbia.

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A better-ranked stock in the Retail-drugstore industry is Herbalife Ltd. (HLF - Free Report) , with a Zacks Rank #2 (Buy). Other favorably placed stocks in broader retail sector include Wal-Mart Stores Inc. (WMT - Free Report) and The Kroger Co. (KR - Free Report) , each carrying a Zacks Rank #2.

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