As Wegmans continues to expand southward, the Rochester, NY-based has faced supply chain pressures to accommodate that growth. On December 11 the high-volume merchant announced it will invest $175 million to build a full-service, regional distribution operation in Ashland, VA (Hanover County). The warehouse will be located along Sliding Hill and Ashcake Roads.
Wegmans currently operates distribution centers in Rochester, NY and Pottsville, PA. The planned one million square foot facility is expected to open by early 2022 and be fully functional by the end of that year. Groundbreaking is expected next spring.
“This site has the right combination of everything we were looking for in terms of proximity to our stores and workforce and is located in a Commonwealth that we have partnered with for many years,” said Wegmans president and CEO Colleen Wegman. “Once it’s up and running, this facility will allow us to deliver products to our southern-most stores with increased speed and freshness and will help support our growth well into the future.”
The new depot will service the company’s 12 current Virginia stores and its new unit in Raleigh, NC. However, by the time the new warehouse is completed, Wegmans is expected to open additional stores in Alexandria, VA; Arcola, VA; Reston, VA; Tysons Corner, VA; and five more in the Raleigh-Durham corridor.
David DeMascole, director of network planning, will oversee the new distribution center project. DeMascole also supervised the construction of Wegmans’ distribution center in Pottsville, PA, which began operations in 2004 and was completed in several phases over the next few years.
“It’s a significant win when a business decides to create 700 full-time, well-paid jobs, and we are proud that a company of Wegmans’ stature has chosen to establish its major new operation in Hanover County,” said Virginia Governor Ralph Northam. “Virginia is a world-class transportation and logistics hub, and the location of this campus will greatly enhance Wegmans’ fast-growing East Coast distribution network. I was grateful for the opportunity to meet with Wegmans officials to discuss ways we can strengthen our partnership, and I look forward to the company’s continued success in the Commonwealth.”
The Virginia Economic Development Partnership (VEDP) worked with Hanover County and the Greater Richmond Partnership to secure the project for Virginia. Northam approved a $2.35 million grant from the Commonwealth’s Opportunity Fund to assist Hanover County with the project. Wegmans is also eligible to receive a Major Business Facilities Job Tax Credit for new, full-time jobs created.