Texas: Target and Walmart Invest $615M

In Houston, Two retail giants – Target and Walmart – reported a combined $615 million in investments in Texas aimed at improving the companies’ supply chains while creating hundreds of jobs in the process.

Target has opened its first ever Receive Center, a new type of facility in the company’s supply chain, in Houston. The 1.2 million-SF center at 5805 S. Sam Houston Parkway receives products from global vendors and holds it until needed.

A Leg Up on Logistics

Located between Target’s Import Warehouses in Georgia and Washington, the facility will service six regional distribution centers and one flow center that will in turn send merchandise on to stores to replenish inventory.

The expanded capacity enables Target to wait to distribute products until needed, a strategy that prevents overcrowding at distribution centers. It also helps the company better control its inventory by securing items such as trending toys early on.

The $265 million Receive Center brings 185 new jobs to Houston, as stated by Target. The company already has more than 6,300 employees at its 40 stores and sortation center in the Houston region.

From Farms to Stores

Separately, Walmart this week reported the opening of a more than 300,000-SF milk processing facility in Robinson, Texas just south of Waco.

The plant will supply more than 650 Walmart stores and Sam’s Clubs across the South Central U.S. It is Walmart’s third owned and operated milk processing facility following openings in Fort Wayne, Ind. and Valdosta, Ga. last year.

The new McLennan County facility, which sources milk directly from local dairy farmers, represents a $350 million investment and creates more than 400 new jobs, as stated by Walmart.

Walmart’s new milk processing facility near Waco. Walmart courtesy photo.

The plant will process and bottle gallon, half-gallon, whole, 2%, 1%, skim, and 1% chocolate milk for Walmart’s Great Value and Sam’s Club Member’s Mark brands.

“The opening of our new facility in Robinson, Texas, will help us deliver more of what our customers want, fresh, affordable food and quality they can trust,” said John Laney, Executive Vice President, Food, Walmart U.S. “It will bolster our capacity to meet the demand for high-quality milk, make our supply chain more resilient, while increasing freshness by reducing the time from dairy farm to shelf, bringing more consistency, more transparency and more value to our customers. We’re excited about what this means for Walmart customers, regional farmers, and the Robinson community.”