Supervalu to Consolidate Eastern Warehouses

MINNEAPOLIS -- Supervalu here Wednesday said it would consolidate distribution from centers in Easton, Pa.; Harrisburg, Pa.; and Perryman, Md., into its Lancaster, Pa., facility, and that it would begin to introduce automated technology to the 1.4-million-square-foot Lancaster facility. The company said it expects to incur after-tax charges of $30 million to $35 million over three years to cover costs of lease exits and employee severance. The project would be completed over the next three years, with customers serviced from existing facilities while the Lancaster facility is modified, Supervalu said. Observers have expected some consolidation among facilities by Supervalu since its deal to acquire Albertsons assets, including the 7-year-old Acme facility, was completed last year. “Acme was serving less than 150 stores from Lancaster, which was nowhere near the level of its capacity, so from that perspective it comes as no surprise,” Bob Gorland, vice president of the Harrisburg office of Matthew P. Casey & Associates, Clark, N.J., told SN. Supervalu serves a variety of independent customers out of the three facilities slated for closure. -- Jon Springer