Johannesburg - Pick n Pay opened its second centralised distribution centre in Cape Town on Wednesday.
"The opening of the distribution centre in Philippi, Cape Town, forms part of the roll-out of four sizeable distribution centres around the country, with a total investment of R2bn," Pick n Pay said in a statement.
The first one was opened in Longmeadow, Gauteng, in 2010.
The new centre would employ 324 staff.
Compared to other retailers, Pick n Pay has been slow to centralise distribution.
In its annual result presentation last month, Pick n Pay said centralised distribution had been one of its major challenges throughout last year, according to Business Report.
The new distribution centre would be environmentally friendly.
"Through distribution centres we are able to reduce our carbon footprint, because our supply chain will use fewer trucks to get products to our stores," said Cobus Barnard, divisional director: supply chain.
Twelve green initiatives had been implemented in the grocery division, focusing on energy management, water management, refrigeration, and the physical materials used for building.