Longs Drug Stores Corporation (Walnut Creek, Calif.) announced plans to build a new 800,000 square-foot, $50 million distribution facility in Patterson, Calif. The new distribution facility will support the company's goal to increase its self-distribution of front-end merchandise to approximately 80 percent from approximately 40 percent by 2007. Longs reportedly selected Patterson based upon the interstate access it provides for routing direct deliveries to Longs stores and its proximity to an existing facility in Lathrop, California.
"We have made considerable progress in reducing our cost of goods and improving our inventory management in the last several years by centralizing our merchandising and improving our supply chain," said Warren F. Bryant, chairman, president and CEO. "Strengthening our direct links with consumer product manufacturers and distributors should contribute to the continued progress we plan to make on improving our profitability long term.
"We evaluated the economic impact of a number of alternatives and believe that building a larger facility designed for self-distribution from the ground up will be more cost effective and better aligned with our goals," Bryant said.
Longs Drug Stores Corp. has 473 stores located in California, Hawaii, Washington, Nevada, Colorado and Oregon.
Source: Longs Drug Stores Corp.