Target to Build First Food Distribution Center

Target (Minneapolis) will build its first food distribution center in Lake City, Fla. Scheduled to open in late summer of next year, the food distribution center will handle a variety of frozen, refrigerated and fresh produce items for Target stores in the Southeast. It will be Target's first company-owned perishable food distribution center. It will be operated in partnership with Supervalu, a grocery story operator and food distribution company with $40 billion in annual sales based in Minneapolis.

In October 2003 the company partnered with Supervalu to open a dedicated facility to provide frozen, refrigerated and fresh produce items to Target stores in the Southwest. Supervalu also provides such products to Target stores around the country from three other facilities. Target executives report that it will continue to distribute virtually all dry grocery items through its regional distribution centers.

"Our food offerings continue to expand across all Target store formats, and we felt now was the right time to enhance our internal capabilities with respect to the direct sourcing and food distribution center management," said Mitch Stover, senior v.p., distribution services for Target. "Target will continue to partner with valued wholesale distributors to ensure our guests receive the freshest and highest quality food products possible."

As Target's food business continues to evolve, the company plans to open additional food distribution centers over the next several years in specific markets as part of its overall distribution network of wholesalers, direct to store and regional distribution centers.

Source: Target

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