Harris Teeter confirmed it will build a new 1.5 million square foot distribution center in Caroline County on a 190 acre parcel off of Interstate 95 in the Carmel Church, VA area. Construction on the first phase of the project, at least 650,000 square feet, is set to begin in 2017. The value of the project, when fully completed, is expected to be $200 million and the center is projected to create 400 jobs.
Speculation first began about the project in September when the Mathews, NC based subsidiary of Kroger sought rezoning for a 1.5 million acre site in Carmel Church.
Harris Teeter has been evaluating Central Virginia sites for a possible distribution center for the past four years. In January 2009, the retailer announced plans to build a depot in King George County that was expected to employ 335 and help the company distribute food to its growing store base in the Baltimore-Washington market and in Delaware. However, negotiations for a $101 million center in Fredericksburg were delayed when the economy stalled. Harris Teeter declined to exercise its option on the site in September 2009, negating the deal.
Ultimately, Harris Teeter built a small relay center and 25,000 square foot warehouse in Fredericksburg to assist with its more northern distribution.
Regarding the new center, Virginia state officials said the new depot will be Caroline County’s largest-ever economic development. Neighboring state North Carolina also sought to have Harris Teeter locate its new DC there, but Virginia Governor Terry McAuliffe’s approved a $650,000 grant from the state’s Commonwealth Opportunity Fund to assist Caroline County in getting the deal. According to the county’s economic development office, it is investing $3.4 million in the project, which is being built on parcels acquired from three separate land owners. Currently, Harris Teeter operates North Carolina distribution centers in Indian Trail and Greensboro.
In related Harris Teeter news, the retailer debuted its biggest store yet January 12 when it cut the ribbon on a 78,200 square foot unit in Pinehurst, NC. The store, located outside of Charlotte, will also feature a gas station, making it among the first Harris Teeter locations to offer fuel.
The new “large format” Harris Teeter store, nearly double the size of its typical unit, will be open 24 hours a day, seven days a week. Many new offerings in the store represent additions from Kroger, which acquired Harris Teeter in 2014, and are designed to offer greater competition against Publix. Among the options available to shoppers will be: a wine and beer bar with 16 beers on tap and a growler station, a meat smoker, juice bar, walk-in humidor, a wing bar in the fresh foods department and an expanded general merchandise offering.