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Macy’s Expands With $584M E-Commerce Fulfillment Center

To meet the growing demands of its omnichannel business, Macy’s Inc. announced Thursday its plans to open a new fulfillment center in China Grove, N.C.

The 1.4 million-square-foot facility, with automated direct-to-consumer fulfillment capacity, will employ nearly 2,800 workers when fully operational. Macy’s will invest approximately $584 million in the project slated to open in 2024.

“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, 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.”

When fully operational, the China Grove Fulfillment Center will account for nearly 30 percent of Macy’s Inc.’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. This 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.

“We are delighted to welcome Macy’s and its state-of-the-art facility to North Carolina,” said North Carolina Gov. Roy Cooper. “When you combine our robust transportation network with our skilled workforce and great quality of life, economic development wins like these will continue to be celebrated statewide.”

Macy’s previously said it plans to expand operations from its current Houston distribution center into a modern, new facility in Tomball, Tex., as part of its Polaris strategy. The nearly 1 million-square-foot 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 fulfillment during peak season for furniture, bedding and toys with opportunities. Additionally, Macy’s has recently invested in automated technology in the existing Portland, Tenn., and Martinsburg, W.V., distribution centers to increase speed and capacity to support the growth of its digital business.