Supervalu Feels Heat from Target DC

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Supervalu Feels Heat from Target DC

02/04/2011

Supervalu Inc. has offered buyouts to 57 employees of its distribution operations in Illinois after Target Corp. recently expanded its distribution center in Iowa.

Minneapolis-based Supervalu distributes products for other retailers and has serviced Target stores from its distribution center in Urbana, Ill., and the W. Newell & Co. specialty produce center in neighboring Champaign, the Minneapolis/St. Paul Business Journal reported.

Target has been expanding its grocery operations, so the Minnesota-based discount chain shifted some business to its Iowa center as it beefs up its distribution network while continuing to contract with Supervalu in other areas.

Supervalu’s buyout offer – a one-time, lump-sum payment – were made this past week, and employees reportedly have until early in the week of Feb. 6 to decide. The Urbana center has about 500 employees; the Champaign location employs 130.

Target announced last fall that it planned to expand its 400,000-square-foot Iowa distribution center, opened in 2009, which specializes in perishable food and supports the company’s “P-Fresh” stores, opened in 2009.