Hy-Vee is continuing to boost its presence in the midwest. The retailer has announced it will begin work on a new, $29 million fulfillment center in Kansas City, Missouri.
With Kansas City Council members approving a $17 million bond for Hy-Vee to build the facility, the retailer is readying to take over nearly 137,000-square-feet in an industrial park in the southern region of the city. According to a report from the Kansas City Star, Hy-Vee officials are saying the facility will be dual purpose, both providing a fulfillment center to support its Hy-Vee Aisles Online order and delivery program, as well as housing a kitchen facility that will prepare food to be distributed to the grocer’s area stores.
Hy-Vee expects to employ about 127 people at the facility’s start, and anticipates this number to rise to more than 200 as time goes on. The source reported that the average annual wage for these jobs is expected to be about $30,000.
Thursday, the city council approved a 50 percent personal property tax abatement for 10 years, worth about $838,000. Hy-Vee’s funding request to the council predicted the retailer will invest $15.5 million in machinery and equipment, as well as $13.5 million in real estate and tenant finishes.
With Hy-Vee continuing to prioritize e-commerce and prepared foods, Deli Market News will keep our eyes on what the company reveals next.