General Merchandise

Core-Mark Opening New Distribution Center in Ohio

Strategic geographical expansion will result in transportation cost savings

SOUTH SAN FRANCISCO, Calif. -- Convenience store distributor Core-Mark Holding Co. Inc. has announced that it will be opening a new distribution center in Glenwillow, Ohio. Core-Mark Wholesale Distributor Ohio (CSP Daily News / Convenience Stores)

From this new division, the company expects to service approximately 1,000 new stores and to transfer an additional 1,000 existing stores from other Core-Mark divisions by the end of the first quarter in 2015.

The company said that it expects this transfer to result in transportation cost savings as the company reduces mileage to service customers in the region. It expects startup costs to be approximately $1.5 million, and capital expenditures to be approximately $16 million. As a result of this new distribution center, Core-Mark's management now expects total capital expenditures to be approximately $50 million for 2014, it said.

"As we expand our customer base in the Midwest region, it is important we have an effective distribution network to service these customers economically and efficiently," said Thomas B. Perkins, Core-Mark's chief executive officer. "We look forward to the benefits of having a division in this area of the country to service many of our existing customers and support our continued market expansion."

South San Francisco, Calif.-based Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the retail convenience store industry in North America. Founded in 1888, it offers a full range of products, marketing programs and technology solutions to more than 30,000 customer locations in the United States and Canada through 28 distribution centers, excluding two distribution facilities that the company operates as a third-party logistics provider. Core-Mark services traditional convenience store retailers, grocers, drug, liquor and specialty stores and other stores that carry convenience store products.

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