Macy’s moves to a larger online fulfillment center in California

January 23, 2015 01:43 PM

Macy’s Inc. is moving its existing direct-to-consumer fulfillment center near Sacramento to a facility that’s more than four times larger and that will ship a broader range of merchandise to consumers in the Western states and Pacific Northwest.

Pending approval by the Sacramento County Board of Supervisors, Macy’s said today it plans to relocate its current 92,000-square-foot distribution center in West Sacramento, replacing it with a 385,000-square-foot facility about 10 miles away in Sacramento County. The new facility is scheduled to open this summer, and the workforce will grow from 72 today to more than 175.

“The rapid growth of Macy's direct-to-customer shipments, rooted in our omnichannel approach to business, requires us to continue to strategically add fulfillment capacity so our customers can receive their orders quickly and efficiently,” says R.B. Harrison, chief omnichannel officer, at Macy's, No. 8 in the 2014 Internet Retailer Top 500.

While the existing facility in West Sacramento handles only certain kinds of merchandise, such as decorative home products and housewares, the new facility will be able to handle a broader range of goods, a Macy’s spokesman says.

Macy’s also operates direct-to-consumer fulfillment centers in Martinsburg, WV; Goodyear, AZ, Portland, TN, and Cheshire, CT, as well as product-specific fulfillment centers in Stone Mountain, GA; Secaucus, NJ; and Joppa, MD. The retailer also is building a new online fulfillment center in Tulsa County, OK, and plans to hire up to 1,500 full-time and seasonal workers for that warehouse this year.

Macy’s hired 10,000 seasonal workers for its direct-to-consumer fulfillment centers during the 2014 holiday season, 30% more than the year before.

While Macy’s no longer breaks out its online sales, arguing that because customers move continually between the retailer’s web sites and stores it’s not clear how to attribute sales, Internet Retailer estimates that online sales for Macy’s totaled $4.15 billion in 2013, an increase of 31% from 2012.





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