Walgreens to establish $34.2M fulfillment center in Hanover

Walgreens will invest $34.2 million to establish a micro-fulfillment center in Hanover County, a project expected to create 249 jobs, Gov. Glenn Youngkin announced Friday.

The 65,686-square-foot facility will be located at the 185,000-square-foot Atlee Station Logistics Center and will have automated machinery to allow for a flexible operating model.

“The Walgreens micro-fulfillment center in Hanover County will be located in strategic proximity to all East Coast markets and greater Richmond’s workforce,” Youngkin said in a statement. “Walgreens is a household brand that provides critical pharmaceutical and health care services, and I am proud that Virginia’s outstanding logistics advantages will play a role in enhancing customer delivery.”

Walgreens, a subsidiary of Walgreens Boots Alliance Inc., operates nearly 9,000 retail locations across the U.S., Puerto Rico and the U.S. Virgin Islands and serves about 9 million customers every day. It currently operates more than 200 stores in Virginia and employs more than 4,600 residents.

“Fulfillment centers like this one in Virginia are dedicated to fulfilling retail prescription orders and play an important role in our effort to create the pharmacy of the future, one that further enables our store pharmacy teams to spend more of their time providing front-line patient care,” Lisa Badgley, Walgreens’ senior vice president of operations, said. “The greater Richmond area was selected due to its favorable business climate, able workforce and premier location.”

The Virginia Economic Development Partnership worked with Hanover County and the Greater Richmond Partnership to secure the project, for which Virginia competed with other states. Walgreens is eligible to receive benefits from the Major Business Facility Job Tax Credit for full-time jobs created. The VEDP’s Virginia Jobs Investment Program will provide funding to support employee recruitment and training activities.