Hy-Vee Plans KC Central Kitchen, Ecom Center

Continuing to boost its commitment to its online grocery sales and prepared food programs, Midwestern grocery chain Hy-Vee Inc. is planning to build a new ecommerce fulfillment center and central kitchen in the Kansas City area.

The $29 million facility in the Three Trails Industrial Park in south Kansas City, Mo., will proceed with the backing of $17 million in industrial revenue bonds approved by city officials, the Kansas City Star reported. The operation will occupy about 137,000 square feet in an existing structure.

West Des Moines, Iowa-based Hy-Vee expects to eventually employ more than 200 people at the facility that will support its Aisles Online ordering and delivery program, as well as a kitchen to prepare food for distribution to its stores in the Kansas City region.

This is the latest move in Hy-Vee’s ongoing commitment to ecommerce. Last month, the retailer announced plans for a small-format store for online pickups near Des Moines, where Hy-Vee recently opened a fulfillment center to service Aisles Online.