Macy’s has opened a new warehouse in North Carolina that uses robots to fill online orders and restock store shelves. The move is part of a broader push to modernize its supply chain ahead of the holiday shopping season.
The $640 million facility in China Grove spans 2.5 million square feet. It is the company’s largest and most technologically advanced distribution center to date. Robots inside the warehouse pick up shoes, apparel, beauty products, toys, and home goods — all designed to help Macy’s ship orders faster and more efficiently.
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Automation drives speed and efficiency
The China Grove site is the retailer’s third automated fulfillment center. It follows similar rollouts in Tennessee and Ohio that executives say doubled productivity. By expanding automation, Macy’s says it can now ship more orders from a single location, reducing delivery times and packaging waste.
“Now, we’re building on those lessons with our most advanced deployment yet including the debut of a new warehouse management system that will provide greater accuracy, flexibility and speed,” said Sean Barbour, Macy’s Senior Vice President of Supply Chain Operations. “We’re proud to celebrate this milestone while continuing to modernize and strengthen our supply chain across the network.”
Meeting growing customer expectations
The technology advances come as retailers race to keep up with customers’ rising expectations for fast, flexible shipping and easy returns.
Thomas Goldsby, a logistics professor at the University of Tennessee, told the Wall Street Journal that customers are “expecting limitless assortment, competitive pricing, simple, easy ordering, visibility of the order, timely delivery and… no questions asked returns.“
How it works
The Journal reports Macy’s new system uses automation technology from Norwegian firm AutoStore and Austrian logistics company Knapp. When an order is placed, robots retrieve items from a grid of stored goods and deliver them to human workers. Those workers then scan, sort and send products through a conveyor system to packing stations for delivery.
Financial boost
The investment follows a strong quarter for Macy’s, which also owns Bloomingdale’s and Bluemercury. The company recently announced second-quarter sales of $4.8 billion — its best performance in three years — giving momentum to its modernization push heading into the holidays.
