Supervalu set to close three Pa.-region distribution centers
Minneapolis, Minn.-based supermarket giant Supervalu Inc. said Wednesday it would close and consolidate three eastern grocery distribution centers into an existing 1.4 million-square-foot facility in Lancaster, Pa.
The affected centers are located in Lower Nazareth Township, Pa., Harrisburg, Pa., and Perryman, Md. The company cited the need for improved distribution operations and increased supply chain automation as a reason for the consolidation.
The company has not said if the 600 employees at the three affected plants were to be let go or offered relocation to the Lancaster facility. The consolidation is expected to take three years, but company officials did not know when the three center distribution centers would close.
Supervalu, which operates 2,500 retail grocery stores, including Shoppers Food & Pharmacy in the Baltimore area, became the third-largest supermarket retailer when it acquired Albertson's Inc. last year.
The company said it expects to take charges of $30 million to $35 million over three years for costs related to employee severance payments and terminating lease agreements, among others.
Supervalu set to close three Pa.-region distribution centers
