QVC adds a distribution center on the West Coast
July 14, 2015 01:01 PM
QVC Inc. will add a fifth distribution center in the United States, building a new facility in Ontario, Calif., about 40 miles west of Los Angeles.
The new center, set to start operating in the third quarter next year, will be about 1 million square feet and be the first on the West Coast for QVC, No. 15 in the Internet Retailer Top 500 Guide. The web, mobile and TV retailer’s other U.S. distribution centers are in Suffolk, Va.; Lancaster, Pa.; Rocky Mount, N.C.; and Florence, S.C.— a network that has shipped more than 570,000 units in a day, QVC says.
It will take several years for the West Coast hub to ramp up to full capacity, and when it does, it will handle about 20% of QVC’s U.S. business, according to the company. By 2018, the California site is expected to employ 500, and by 2020 will have 1,000 workers as the center expands to fulfill all product categories, QVC says.
The building will include a 250-kilowatt rooftop solar array and use high-efficiency systems for lighting, heating and cooling, and will be LEED (Leadership in Energy and Environmental Design) certified. The distribution center is expected to reduce QVC’s trucking use by more than 10 million miles a year and cut more than 35 million pounds of carbon dioxide emissions annually, the company says.
QVC applied for and received a California Competes tax credit used to recruit global companies to the state, said Mike Rossi, senior adviser for jobs and business development to Gov. Jerry Brown.
QVC is owned by Liberty Interactive, which in October split QVC and its stake in HSN Inc. from its other e-commerce companies, which include Bodybuilding.com and drop-ship and fulfillment vendor CommerceHub. Liberty Interactive sold Backcountry.com earlier this month to private equity firm TSG Consumer Partners.