Rite Aid plans to close its Charlotte distribution facility, which employs about 350 workers, and open a new, $90 million facility in Spartanburg, S.C., the pharmacy company said Wednesday.
The company is consolidating its Charlotte distribution operations – which it said last year it planned to close because they were in a costly, old building – with distribution centers from West Virginia and Alabama. Employees who work at the Charlotte facility on Statesville Avenue will be able to apply for jobs at the Spartanburg facility and area Rite Aids. Those who do not get a job will receive severance and outplacement benefits, a spokeswoman said.
Rite Aid’s new facility will bring a total of 600 jobs to Spartanburg. The company is receiving a $525,000 grant for infrastructure improvements from the South Carolina Power Team, in conjunction with Broad River Electric Cooperative. South Carolina also approved job tax credits for the company, but didn’t disclose the full value of those credits Wednesday.
“Spartanburg is an ideal location for our new distribution center. We thank the state of South Carolina for their cooperation and support during our site selection process,” said Rite Aid CEO John Standley, in a statement. The location along the I-85 corridor will help improve efficiency, the company said. Rite Aid plans to start using the distribution center to send goods to stores in March 2016.
“We welcome Rite Aid to the South Carolina family and look forward to watching them succeed here for many years to come,” said S.C. Gov. Nikki Haley.