Macy's to open fulfillment center in North Carolina on increased e-commerce demand

By

Benjamin Fitzgerald

Published
Apr 1, 2022

Macy's Inc. said on Thursday it plans to open a new fulfillment center in North Carolina in 2024, as the U.S. department store chain expands it supply chain operations to keep up with e-commerce demand.

Located in China Grove, NC, the 1.4 million-square-foot facility will host an automated direct-to-consumer fulfillment capacity and will employ nearly 2,800 workers when fully operational.

The new facility will cost approximately $584 million, the New York-based company said.

“This state-of-the-art facility is a significant milestone for Macy’s, Inc. as we invest in strengthening our omnichannel ecosystem. It will support growth of our business as a leading omnichannel retailer,” said Dennis Mullahy, chief supply chain officer at Macy's.

“We are delighted to become a member of the China Grove community and look forward to partnering with local and state officials to bring jobs and drive opportunity for local residents.”

Once operational, Macy estimates the facility will process some 30% of Macy’s digital supply chain capacity, serving customers nationwide. The facility's new automation technology includes an advanced goods-to-person and pocket sorter system that will help modernize the retailer’s supply chain by moving merchandise with greater speed and accuracy, "increasing capacity and productivity to help drive profitable digital sales growth," Macy's added.

Coinciding with the China Grove facility news, Macy's reaffirmed plans to expand operations from its current Houston, TX distribution center into a new facility in Tomball, TX, to be completed in mid-2023.

The nearly one-million-square-foot distribution facility, located at 14000 Boudreaux Road, will be established in a new industrial development alongside Lovett Industrial and Clarion Partners. 

Additionally, Macy’s said it has recently invested in automated technology in the existing Portland, TN and Martinsburg, WV distribution centers to increase speed and capacity to support the growth of the retailer’s digital business.

In its most recent trading update in February, Macy's ​said its e-commerce business grew 12% during the all-important holiday quarter. Looking ahead, the company said online sales are expected to account for 37% of overall sales in 2022.