What: Macy’s to spend USD 584 mn on fulfillment center that will account for nearly 30% of Macy’s digital supply chain capacity, serve customers nationwide, and employ nearly 2,800 workers.

Why it is important: Macy’s is spending big to strengthen its supply chain, by opening its largest at 1.4-million-square-foot fulfillment center in China Grove, N.C., in 2024.

For retailers, modernizing the supply chain for speed and efficiency is important to support their ongoing digital growth and meet customer demand for speedy deliveries, and help offset macro issues such as the pandemic, port bottlenecks, and labor shortages impeding the movement of goods.

Macy’s has a new, three-year, USD 3 bn cap-ex budget that’s pumped up from recent prior budgets. It’s largely devoted to growing the digital business by launching a marketplace next August, which will get the retailer into additional categories and stock-keeping units from what is on the website currently.

Considering the United States’ tight labor force, Macy’s could face challenges filling all of the positions at the center. However, the company said it offers career opportunities, competitive pay, a bilingual work environment, merchandise discounts, flexible scheduling, and access to a new debt-free education program for part-time and full-time colleagues.

Macy’s also recently invested in automated technology in the existing Portland, Tenn., and Martinsburg, W.Va., distribution centers to increase speed and capacity for digital sales growth.

Macy’s invests in new fulfillment center (Press Release)

Macy’s invests in new fulfillment center (WWD Article)