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Target Builds First Food
Distribution Center

Looks like Target is tip-toeing in to make its version of the super center more competitive by backing it up with some enhanced logistics capability:

MINNEAPOLIS — Jan. 31, 2007 — Target today announced the construction of its first food distribution center in Lake City, Florida. Scheduled to open in late summer 2008, the food distribution center will enable a wide variety of frozen, refrigerated and fresh produce items to reach Target guests in the Southeast. It will be Target’s first company-owned perishable food distribution center. This facility will be operated in partnership with Supervalu, one of the leaders in the grocery industry.

In October 2003 the company partnered with Supervalu to open a dedicated facility to provide frozen, refrigerated and fresh produce items to Target stores in the Southwest. Supervalu also provides these products to Target stores around the country from three of their other facilities. Target has been and will continue to distribute virtually all dry grocery items through its regional distribution centers.

“Our food offerings continue to expand across all Target store formats, and we felt now was the right time to enhance our internal capabilities with respect to the direct sourcing and food distribution center management,” said Mitch Stover, senior vice president, distribution services for Target.“ Target will continue to partner with valued wholesale distributors to ensure our guests receive the freshest and highest quality food products possible.”

Janel Haugarth, Supervalu executive vice president and COO, supply chain services, commented, Target is a valued supply chain services customer and we look forward to supporting their future store expansion plans across the country, as well as the new third-party facility management relationship. We pledge to deliver best-in-class supply chain services.”

As Target’s food business continues to evolve, the company plans to open additional food distribution centers over the next several years in specific markets as part of its overall distribution network of wholesalers, direct to store, and regional distribution centers.

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