Dive Brief:
- Wegmans Food Markets is investing $110 million in its supply chain that it said will expand capacity, strengthen operations and create long-term opportunities, according to a Thursday press release.
- The grocer said a focal point of this initiative is a new refrigerated facility based in Rochester, New York, that will support perishable operations like fresh produce, meat and seafood, deli, and restaurant offerings.
- More grocers are investing in their distribution logistics, including bringing operations in-house in an effort to gain more control over their supply chains.
Dive Insight:
Wegmans said the forthcoming changes will lessen the grocer’s reliance on third-party providers as well as give it expanded capacity.
Wegmans will relocate its return center operations from its current location on Winton Road in Rochester to a more modernized building in the city. This new location and the refrigerated facility are still in the planning stages, with construction and opening timelines not yet finalized, per the press release.
Network consolidation is also forthcoming. Wegmans’ Winton Road general merchandise distribution center in Rochester will consolidate to the grocer’s Pottsville, Pennsylvania, general merchandise facility. This consolidation is expected to occur in spring 2027, according to the announcement.
Wegmans said there will be no layoffs related to these changes and that it will work with impacted staffers throughout the transition process and keep them updated on timelines.
Wegmans is following in the footsteps of grocers like Sprouts Farmers Market and Ahold Delhaize USA, both of which are building out self-distribution networks.
