Denton (WBAP/KLIF News) – WinCo Foods is opening a $135 million distribution center in Denton. WinCo says the center will be the biggest single economic development project in Denton’s history.
The 800,000 square foot distribution center will serve nine stores in Texas initially, with three opening in Oklahoma next year.
“It’s a pretty significant investment for us to come in here and say, ‘This is a market that’s been good to us, and we know this is a market we can be successful in,’” says Craig McPhee, WinCo’s vice president of warehousing.
Until now, WinCo used outside distribution networks as it received merchandise for stores in Texas. The center in Denton will reduce outside costs and is also the chain’s first that stores food along with other merchandise.
The facility is built with the expectation that WinCo will continue to grow in Texas. About 40 percent of the center will be empty.
McPhee says the center will become profitable when it is providing merchandise for about 20 stores. The center near Denton Enterprise Airport is large enough to serve 35 stores.
“It is gratifying,” he says. “There were a lot of us who put a lot of time and effort into the development of the store, so it’s pretty awesome to come in here and finally see it coming together.”
The center in Denton uses more automation than older distribution centers.
Right now, the center is shipping fresh fruit and will start sending meat to stores this week. McPhee says the average store goes through about 550 boxes of bananas each week, with each box weighing 50 pounds.
About 165 people will work at the distribution center.
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