Best Buy Aggressively Moves Forward with Distribution Warehouse Construction

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Inc.: Houston, Texas). Best Buy Incorporated (NYSE:BBY) (Eden Prairie, MN), one of the largest retailers of electronic and entertainment products, is making headway with construction on a 400,000 sqft addition to their Dinuba California distribution center. Late last fall the company broke ground on the $22 million expansion and earlier this week, the third concrete tilt-up wall was raised, making room for the interior phase of construction.

Best Buy has chosen Rapistan Material Handling Automation, a Division of Siemens Dematic Corporation (Grand Rapids, MI), to provide material handling equipment for the expansion. Meridian Construction Management Inc. (Spokane, WA) is providing construction management for the project along with general contractor Clayco Construction (St. Louis, Missouri).

The company is also considering other locations for expansion. Most recently, a short list of four general contractors have been selected to provide requests for proposal (RFP) for a new grassroot 650,000 sqft regional distribution center in the Northeast. Future expansion plans are also being considered for the Northeast site. Best Buy is anticipating the Northeast site to eventually expand to 1.6 million sqft of distribution space.