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12/20/2013

Macy's Invests $170 Million in New Omnichannel Fulfillment Center

Macy's, Inc. is planning a major new direct-to-consumer fulfillment center near Owasso in Tulsa County, Okla., to support continued sales growth driven by Macy's omnichannel strategy.

The site is located about 12 miles north of Tulsa. The company is expected to invest more than $170 million in the facility, including the latest technology in material handling equipment and warehouse management systems.

Construction of the 1.3 million-square-foot facility is expected to begin in spring 2014, with operations starting in April 2015 and the first orders shipping in summer 2015. When fully operational, the Tulsa fulfillment center is expected to employ approximately 1,500 full- and part-time associates year-round. In addition, another 1,000 or more temporary seasonal associates are expected to be hired each year to handle a significantly higher level of online orders from customers during the holiday shopping season. Between 350 and 500 construction jobs are expected as the facility is built.

"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 chief executive officer of Macy's, Inc. "We have rolled out fulfillment capability to 500 Macy's stores nationwide, as well as built three major fulfillment centers over the past seven years. Our new Tulsa County facility will represent another significant expansion of our shipping capacity, particularly to customers in central and southern regions of the United States.

"Tulsa County is the ideal location and environment for this new facility, and we look forward to becoming a larger presence in northeast Oklahoma," Lundgren said. "We are delighted by the warm reception and enthusiastic support we have received from civic and business leadership in Oklahoma. In particular, we want to thank Gov. Mary Fallin, Commissioner John Smaligo Jr. and the Tulsa County Board of Commissioners, Mayor Doug Bonebrake and the City of Owasso, Cherokee Nation Principal Chief Bill John Baker, the Indian Nations Council of Governments and the Tulsa Regional Chamber. They were instrumental in our decision to select Tulsa County from among more than 150 sites in multiple states for this significant investment."

Direct-to-customer orders originating from macys.com, the Macy's app and Macy's stores currently are handled by Macy's, Inc. fulfillment centers located in Goodyear, Ariz.; Portland, Tenn.; and Martinsburg, W.V., as well as by fulfillment functions at 500 Macy's stores. Direct-to-customer orders originating from bloomingdales.com, 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.