Getting room to grow, Amelia's Grocery Outlet is moving from New Holland to a larger building in Leola.

The company will relocate its corporate headquarters and warehouse from 120 Orlan Road to the former Super-Dog Pet Food property in April.

Amelia's has signed a 10-year lease on the 43 Graybill Road property, said Amelia's Mike Mitchell on Tuesday.

"It's a nice, clean building at a good price," said Mitchell, president and chief executive officer.

"It's very centrally located from all of our stores and it's not far from our current location. It's a bull's-eye fit for us."

The move follows the December sale of the 13-store chain to Grocery Outlets Inc., based in Berkeley, Calif., for an undisclosed price.

Amelia's continues to be led by Mitchell and his brother-in-law, Jeff Good, chief operating officer.

Grocery Outlets Inc. prefers to lease facilities, rather than own, keeping corporate dollars free to be invested in operations.

The transaction not only aligns Amelia's with that philosophy, but provides room to expand, noted Mitchell.

The former Super-Dog site is 99,000 square feet. It can be enlarged by 50,000 square feet in the future, if demand warrants.

In contrast, the Orlan Road location is 70,000 square feet, which Amelia's supplements by leasing another 15,000 square feet nearby.

In advance of the move, the Orlan Road location has been sold to Fleur De Lait Foods, a New Holland-based cheese company.

According to Mitchell, Amelia's new home is in "very good shape."

Still, it will require about $400,000 in equipment, mostly for a warehouse racking system.

All 40 Amelia's employees on Orlan Road will transfer the four miles to Graybill Road, he said.

That workforce could rise to 60 to 75 as Amelia's adds stores over the next two or three years.

"This is a great opportunity for Amelia's and the community. We're going to continue to build the business. It's a win for us, our customers and the community," said Mitchell.

Amelia's is "ramping up its growth plans," fueled by the financial and inventory-sourcing support of Grocery Outlets, a 160-store chain that posts $1 billion a year in revenue.

Like Amelia's, Grocery Outlets specializes in finding and retailing brand-name close-out products at deep discounts.

Backed by the support of its new owner, Amelia's is finalizing leases for two more Berks County locations, said Mitchell, as eyes opening four or five new locations a year.

Amelia's was established in 1989 with two Victor F. Weaver outlet stores purchased from Tyson Foods.

It now posts annual revenues of $50 million, up 7 percent in 2011, and employs 380 workers.

Super-Dog closed its Graybill Road location last March, idling 80 workers.

The shutdown came after the business was sold to Phillips Feed & Pet Supply and consolidated at Phillips' Easton headquarters.

However, the Graybill Road property remains owned by Super-Dog founder Robert H. Schober. Scott Bradbury of U.S. Commercial Realty handled the lease transaction.

tmekeel@lnpnews.com