Saks Picks Tennessee for Third DC

Retailer Saks Incorporated announced it will expand its distribution and fulfillment capacity, adding a new facility in Tennessee in 2012.

The new distribution and fulfillment center will occupy approximately 564,000 square feet of leased space and will be located in LaVergne, Tenn., which is in Rutherford County and near the state capital of Nashville. The new center will be state-of-the-art and equipped with a sophisticated mobile-robotic fulfillment system that has been successfully utilized in the company's Maryland facility. The company expects the Tennessee facility to be operational by August 2012 and ultimately to employ over 250 full-time associates at complete capacity.

Steve Sadove, chairman and chief executive officer of Saks, said, "In order to support our omni-channel strategy and our continued sales growth, some time ago we recognized that we would need additional distribution and fulfillment capacity beginning in 2012. Middle Tennessee is a great fit for our new facility and was selected for its central location, attractive real estate and operating costs, and very capable workforce. We are most appreciative of Governor Haslam and the various state and local leaders that worked together so diligently to make this possible."

Saks currently operates a leased distribution center in Aberdeen, Md., totaling approximately 471,000 square feet, and a leased distribution center in Ontario, Calif., totaling approximately 120,000 square feet. The company will continue to operate those two facilities.

The Tennessee distribution center is owned in a joint venture managed by DCT Industrial Trust, a leading real estate company.

Saks Incorporated operates 46 Saks Fifth Avenue stores, 60 Saks Fifth Avenue OFF 5TH stores, and

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