Harris Teeter to invest $95 million in first Virginia distribution operation

Governor Terry McAuliffe has announced that Harris Teeter, a wholly-owned subsidiary of The Kroger Co. (NYSE: KR), will invest $95 million to establish a 1.5 million-square-foot food distribution operation in Caroline County.

The first phase will be at least 650,000 square feet. Virginia successfully competed with North Carolina for the project, which will create 400 new jobs, according to a news release.

Governor McAuliffe was quoted in the news release as saying, “This project is a significant win that represents major investment and the creation of hundreds of jobs. Today’s announcement is a great step forward in our efforts to diversify and build a new Virginia economy.”

According to a statement from Secretary of Commerce and Trade Maurice Jones. “Virginia, which is within a 10-hour drive from over 50% of the U.S. population, has proven to be a strategic location for companies’ distribution and logistics assets. We have a coveted location in the middle of the U.S. east coast, outstanding talent, a great business climate and incredible quality of life.”

Harris Teeter, headquartered in Matthews, N.C., was co-founded in 1960 by North Carolina grocers W.T. Harris and Willis Teeter. Harris Teeter operates over 230 stores and three fuel centers in seven states and the District of Columbia. Harris Teeter has approximately 28,000 associates.

“Harris Teeter is thrilled by the opportunity to grow our business with a new distribution center in Caroline County,” Danna Robinson, communication manager for Harris Teeter, was quoted as saying, “The location makes sense for our existing distribution structure.””

According to the news release, Virginia Economic Development Partnership worked with Caroline County to secure the project for Virginia. Governor McAuliffe approved a $650,000 grant from the Commonwealth’s Opportunity Fund to assist Caroline County with the project. The company will also be eligible to receive a Major Business Facility Job Tax Credit. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.