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The warehouse will be constructed just east of the present Fareway warehouse, said Fred Greiner, e.v.p. and c.o.o. of Fareway Stores, Inc.
Greiner told Progressive Grocer that the company was building the new facility because of "our continued growth in new stores, and additional volume in current stores." He added that recent technology had allowed a lot of new items to be developed in the area of refrigeration.
The planned facility will feature seven levels of automated storage and a mechanical retrieval system.
Construction is slated to start later in the spring, and the warehouse is expected to be up and running by April 2006.
Fareway, which currently has 6,500 employees, operates 84 stores in Iowa as well as two in Nebraska and one in Illinois.