What: Macy’s is using space within 35 of its stores to function as mini distribution centers as the retailer positions its e-commerce network to handle an expected influx of shipments ahead of the holidays.

Why is it important: The move gives Macy’s distribution network a presence closer to customers, allowing the retailer to better service demand during the holiday season, but also creates more space at other facilities for new products down the line.

The mini distribution centres are semi-automated and expected to save shipping costs, speed deliveries and reduce the need for split shipments.

The retailer has maintained strict inventory discipline, as well as made investments in data and analytics that has laid the foundation for continued inventory control and is now in the position to buy more product if demand calls for it.

Macy’s establishes mini distribution centres