Rex Stores plans Cheyenne hub

CHEYENNE – Rex Stores Corp. is a newcomer to the West, but officials of the Ohio-based consumer-electronics and appliance retail stores are banking on growth by establishing their Western Distribution Center in Cheyenne.

The Dayton, Ohio, company plans to begin construction soon on a 150,000-square-foot distribution center on 58 acres in the Cheyenne Business Parkway to serve retail stores in Western states, including two stores in Wyoming and two in Colorado.

Rex currently operates a 315,000-square-foot distribution center in Dayton to serve much of the East and Midwest and a 150,000-square-foot distribution center in Pensacola, Fla., for the Gulf Coast.

“The distribution center here in Cheyenne will complement our other two distribution centers perfectly,´ said Keith Magby, Rex’s vice president for operations.

Company officials are projecting an initial employment of 20, but they say the Cheyenne distribution center could expand if Rex’s market in the West grows.

Rex operates 227 stores in 29 states, primarily in the Midwest and Southeast, and is one of the nation’s leading consumer-electronics chains. According to Rex’s 1996 annual report, 17 of the 34 new stores opened in fiscal 1996 were west of the Mississippi, including stores in Cheyenne and Casper, Pueblo and Grand Junction, and its expansion included “a successful move westward into Colorado, Idaho, Wyoming and Washington.” It added 35 more stores in fiscal 1997, including stores in Greeley, Montana and the Dakotas, 11 west of the Mississippi.

The company reported net sales of $442 million in fiscal 1996 and net income of $14.5 million, a 16 percent increase. The company said it posted gains in earnings a record 23 consecutive quarters, and it said it has continued its prescription for success by expanding in small and medium-sized markets.