Macy's Invests $170 Million For New Fulfillment Center in Oklahoma

Macy's Inc. (NYSE: M) revealed that it plans to spend more than $170 million to construct a new 1.3 million-square-foot direct-to-consumer fulfillment center in Oklahoma. As online sales continue to surge, the facility is being built to support the retailer's omnichannel strategy and get more goods to e-commerce customers, particularly in the central and southern regions of the United States.

The fulfillment center will be located 12 miles north of Tulsa and will have the latest technology in material handling equipment and warehouse management systems, said Macy's. The facility should be up and running by April 2015, with the first orders shipping in summer 2015.

"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. Customers today are shopping whenever, however and wherever they prefer — via stores, desktops and mobile devices — and we continue to invest to meet the customer demand," said Terry J. Lundgren, chairman, president and CEO of Macy's in a company statement.

When fully operational, the center is expected to bring 1,500 full- and part-time jobs year-round to the Tulsa area. Another 1,000 or more temporary seasonal associates will be hired to help with the increased volume of orders for the year-end holiday season. Construction, expected to employ another 350 to 500 people, is scheduled to begin in April and be complete by April 2015. Area and state leaders in Oklahoma heralded the news of the Macy's distribution center as the largest Tulsa-region jobs announcement in nearly a decade.

Orders originating from macys.com, the Macy's app and Macy's stores currently are handled by fulfillment centers in Goodyear, Ariz.; Portland, Tenn., and Martinsburg, W.Va. Fulfillment is also organized at 500 Macy's store locations across the country. Direct-to-customer orders originating from bloomingdales.com, the Bloomingdale's app and Bloomingdale's stores are handled primarily by a fulfillment center in Cheshire, Conn., as well as all 37 Bloomingdale's stores.

For more see:
-This Macy's press release

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