Target Corp. has opened a $367 million food distribution center in Thornton, Colorado, that will serve 129 stores in 11 states, allowing customers to have fresher food and more availability.
Stores are dedicating more space for fresh and frozen food products and Target (NYSE: TGT) is expanding its fresh supply chain network to position products closer to consumers to support that growth and improve distribution efficiency. Target has added four food DCs in three years.
Management mentioned the new Colorado facility during last month’s earnings call, but provided few details. During the first quarter, Target introduced 3,000 new food items, with sales from those items growing more than 50% over the prior assortment, Chief Merchandising Officer Cara Sylvester told analysts.
The 529,000-square foot temperature-controlled facility will help replenish those locations up to two days faster than before. It is the largest of nine Target food distribution centers and the first with consolidation capabilities, the company said Thursday in a blog post.
The building connects vendors and other food distribution centers with a dedicated section to combine separate shipments from different vendors into trucks that then go fully loaded to a designated destination. Consolidation reduces the volume and cost of transportation across Target’s network and streamlines arrivals at other facilities, resulting in a more efficient unload process.
The new Thornton facility, which will employ more than 350 persons, will lead to “stronger in-stock reliability, expanded assortment opportunities and faster replenishment,” said Amy Probst, senior vice president of food and beverage supply chain.
Last month, Target named Jeff England as its new chief supply chain officer. In April, Target opened a $265 million “receive” center for imported goods that acts as a buffer between import warehouses and regional distribution centers.
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Write to Eric Kulisch at ekulisch@freightwaves.com.
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