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QVC Opens New West Coast Distribution Center to Improve Consumer Experience

Broadcast retailer QVC opened a new distribution center in California to accommodate more shipments for its e-commerce customers.

The new 1-million-square-foot center in Ontario, California, is the company’s first on the West Coast and it’s expected to bring the city 500 new jobs by 2018 and 500 more by 2020.

“QVC is a destination where consumers find what they love and love what they find and our new Ontario distribution center allows us to continue to enrich our customer experience,” James Reid, vice president of customer logistics for the U.S., said in a statement.

The Ontario facility will handle roughly 20 percent of QVC’s total U.S. shipments, and will store and ship goods from all product categories, ranging from beauty products to bigger ticket items like TVs.

To maximize efficiency, the LEED-certified facility will high efficiency systems for lighting, heating and cooling, plus a solar rooftop. QVC expects the new center will lower its use of trucking by more than 10 million miles every year, which means a reduction of more than 35 million pounds of CO2 emissions annually.

For the second quarter, QVC parent company Liberty Interactive Corporation earlier this month reported the retailer’s revenue up 21 percent to $2.4 billion and net income up 13 percent to $127 million, both of which include the company’s fourth quarter 2015 Zulily acquisition.

Mobile was up at QVC in the quarter, with 58 percent of all orders made on a mobile device—an 850 basis point increase.

“We reported solid second quarter results, with good sales growth in most markets,” QVC president and CEO Mike George said. “Late in the quarter, we experienced a deceleration in demand in the U.S. that has continued. As a result, our near-term perspective is more cautious. Longer term, we remain well-positioned with our highly differentiated retail model, strong customer retention, and our ability to deliver compelling experiences across immersive commerce platforms.”

The new center, which is supposed to help fuel that compelling experience, adds to QVC’s existing four other U.S. distribution centers in Virginia, Pennsylvania, North Carolina and South Carolina.