The facility, which will employ 2,800 workers and become operational in 2024, will account for 30% of the retailer’s digital supply chain capacity in the country. It is being designed to help Macy’s build on its operational capabilities as it shifts its focus to boosting online sales. The announcement comes nearly two months after Macy’s revealed plans to expand its distribution center in Houston into a 1 million square foot facility.
Macy’s is also making investments in automating processes at its distribution centers in Portland, Tennessee, and Martinsburg, West Virginia, the company noted in a press release.
“This state-of-the-art facility is a significant milestone for Macy’s, Inc. as we invest in strengthening our omnichannel ecosystem,” said Dennis Mullahy, chief supply chain officer at Macy’s.
“It will support growth of our business as a leading omnichannel retailer.”
Macy’s investments in expanding its operational capabilities are part of its three-year Polaris strategy, a plan for boosting sales that was launched in February 2020. The plan has been designed to accelerate digital sales and rejigger supply chain flows to deliver an improved omnichannel experience to customers.
Even though the retailer has faced its share of struggles during the pandemic, its turnaround plan is seemingly working. The company’s comparable sales went up by 28.3%, while digital sales were up 12% year over year, according to Macy’s latest earnings report.
