Monday, March 5, 2012
FreshDirect chose the MOST EXPENSIVE option!
Unbelievable! FreshDirect not only identified and has the ability to stay and expand in Long Island City, a move to the Bronx represents the highest cost option!
"To meet its long-term space requirements, Fresh Direct has identified three primary options:
Long lsland City: Fresh Direct has identified a lot adjacent to its Borden Avenue facility
which the Company could purchase and develop. The lot would accommodate a new
96,000 square foot expansion facility, which, combined with the extension of one or more
of its recently leased facilities would provide the necessary capacity to accommodate the
planned growth. While operating from multiple facilities creates inherent inefficiencies,
this option provides for the least amount of business disruption and lowest employee
attrition. Further, this option requires the lowest level of capital investment, allowing the
Company to deploy those resources to other areas of the business operations.
Harlem River Yards, Bronx: The Company is considering a greenñeld site in the Bronx
for the construction of a new 325,000 square foot facility, plus additional mezzanine
space. Under this scenario Fresh Direct would consolidate all of its Long Island City
operations into the new Bronx facility. While new construction on this site represents the
highest cost option, requiring significant upfront capital, it achieves two of Fresh Direct’s
primary occupancy objectives by delivering highly efficient operating space with limited
business disruption and employee attrition.
Secaucus Road, Jersey City: Fresh Direct also is considering a new construction project
in New Jersey. The Company has narrowed its search to a single site facility on
Secaucus Road in Jersey, where it would construct a new facility of approximately
400,000 square feet. As with the Bronx option, the full Long Island City operations
would be relocated and consolidated into this new facility. While this option achieves the
desired operational efficiencies, it results in the highest level business disruption and
employee attrition, and requires significant upfront capital investment.