Macy’s establishes mini distribution centers at 35 stores

Macy’s is adding distribution space not only to prepare itself for the busy holiday season, but to also create more space at other facilities for new products down the line.

Dive Brief:

• Macy’s is using space within 35 of its stores to function as mini distribution centers as the retailer positions its e-commerce network to handle an expected influx of shipments ahead of the holidays.
  
  
• Around 1 million square feet of store space has been converted to be used for fulfillment services, CFO Adrian Mitchell said on an earnings call Thursday. The move gives Macy’s distribution network a presence closer to customers, allowing the retailer to better service demand.
  
  
• The mini distribution centers are semi-automated and expected to save shipping costs, speed deliveries and reduce the need for split shipments. “They are relatively low-cost complements to our existing fulfillment network,” said Mitchell.