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April 1, 2022

Macy’s bolsters supply chain with $584m automated fulfilment centre

US department store retailer Macy's, Inc is to invest more than US$584m in a new automated fulfilment centre which, when fully operational, will account for nearly 30% of its digital supply chain capacity.

By Beth Wright

Macy’s is investing funds to build its first automated fulfilment centre in the town of China Grove, Rowan County, North Carolina, in a move set to create some 2,800 new jobs.

When fully operational, the 1.4m sq ft China Grove Fulfillment Center will account for nearly 30% of Macy’s digital supply chain capacity and serve customers nationwide. The facility will be equipped with new automation technology to increase capacity and productivity to help drive profitable digital sales growth.

The new automation includes an advanced goods-to-person and pocket sorter system that will help modernise the retailer’s supply chain by moving merchandise with greater speed and accuracy, Macy’s says.

“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,” adds Dennis Mullahy, Macy’s chief supply chain officer. “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.”

As previously announced, Macy’s plans to expand operations from its current Houston, Texas, distribution centre into a modern, new facility in Tomball, Texas, as part of the Polaris strategy.

The nearly 1m sq ft distribution facility will be established in a new industrial development alongside Lovett Industrial and Clarion Partners. The new facility will be completed in mid-2023 and will continue to support stores in the region as well as provide online fulfilment during peak season.

Additionally, Macy’s has recently invested in automated technology in the existing Portland, Tennessee, and Martinsburg, West Virginia, distribution centres to increase speed and capacity to support the growth of the retailer’s digital business.

Macy’s CEO Jeff Gennette recently hailed the company’s fourth-quarter results which he said exceeded expectations across all three of its brands.

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