Dive Brief:
- Schnuck Markets announced last week it will close its sole company-operated warehouse as part of a transition out of operating its own facilities.
- The distribution center, located in Bridgeton, Missouri, will permanently shutter on March 28, 2027, eliminating 64 warehouse-specific union and non-union roles.
- Schnucks said the closure won’t impact store operations or product availability and noted that this warehouse manages only a small portion of the company’s product assortment and provides general storage.
Dive Insight:
Schnucks’ decision to no longer run a company-owned facility goes against grocery industry trends as grocers Ahold Delhaize USA and Sprouts Farmers Market ramp up self-distribution networks.
Over the next eight months, the warehouse will continue normal operations through a phased wind-down, and impacted workers will remain employed until the late March closing date, according to the press release. The grocer added it will work with union leadership to discuss transition plans and benefit frameworks for unionized teammates while also providing guidance and placement resources for non-union workers.
Schnucks added that the 64 warehouse roles being eliminated represent less than 1% of its total regional workforce.
Long-term plans for the Bridgeton warehouse, located at 12921 Enterprise Way, and fulfillment going forward are “actively being developed,” the company said, noting that it will finalize plans over the course of the eight-month transition period.
The move comes less than a year after the formation of the 1939 Group, a holding company that encompasses Schnucks as well as Skogen’s Festival Foods and Hometown Grocers.
