SPARTANBURG, SC—Drug store retail chain Rite Aid Corp. reports it plans to build a new 900,000-square-foot distribution center here, the first new distribution facility in 15 years for the Camp Hill, PA-based firm.

Rite Aid is working with Spartanburg-based Johnson Development Associates on the project that is expected to be completed in 2016. The new distribution center will employ almost 600 workers after it becomes fully operational and will support the inventory and fulfillment needs of approximately 1,000 Rite Aid stores in the southeastern United States.

“Rite Aid's decision to build a new distribution center in Spartanburg County is a tremendous reason to celebrate,” says South Carolina governor Nikki Haley. “This $90-million investment that will create hundreds of jobs in the Upstate will make a real difference in the local community. We welcome Rite Aid to the South Carolina family and look forward to watching them succeed here for many years to come.”

“Spartanburg is an ideal location for our new distribution center,” says John Standley, Rite Aid chairman and CEO. “We thank the state of South Carolina for their cooperation and support during our site selection process and we look forward to breaking ground on our new facility which will help us to further optimize our supply chain and better serve our stores and customers across the Southeast.”

In April 2014, after a comprehensive review of its supply chain and logistics network, Rite Aid said it would consolidate three of its existing distribution centers, located in Tuscaloosa, AL; Charlotte, NC; and Poca, WV into one new facility, as part of its ongoing efforts to improve operating efficiency across the company.

The Coordinating Council for Economic Development approved job development credits related to the project. Additionally, the South Carolina Power Team, in conjunction with Broad River Electric Cooperative, committed a $550,000 grant for infrastructure in support of the project.

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