Wegmans to Build $175M Distribution Center in Virginia

Wegmans Food Markets will invest $175 million to establish a new full-service, regional distribution operation in Ashland, Va. The distribution center is expected to create 700 new jobs in the area, about 20 miles north of Richmond.

Located along Sliding Hill and Ashcake roads in Hanover County, the new campus—reportedly chosen over sites in North Carolina—will allow the company to expand its distribution network on the East Coast and accommodate its growing retail footprint. The announcement follows a recent meeting between Gov. Ralph Northam and Wegmans’ real estate and development officials at the company’s headquarters in Rochester, N.Y.

“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,” Northam said in a statement.

“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,” President and CEO Colleen Wegman said in a release. “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 Virginia Economic Development Partnership 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 Facility Job Tax Credit for new, full-time jobs created.

“It is exciting to add Wegmans to the growing list of major corporations that see Hanover County as a destination of choice, due in large part to our cost of doing business, strategic location along the Eastern Seaboard and expedited planning processes,” Hanover County Director of Economic Development Linwood Thomas said in a statement. “Wegmans will create hundreds of good-paying jobs well above our average prevailing wage, and at full buildout, will be one of our largest taxpayers.”    

Wegmans operates 101 supermarkets with locations in New York, Pennsylvania, New Jersey, Virginia, Maryland, Massachusetts and North Carolina.