Macy's, Inc. announced it will build a major new direct-to-consumer fulfillment center near Owasso in Tulsa County, OK, to support continued sales growth driven by Macy's omnichannel strategy. The site is located strategically near the intersection of 76th Street North and Lakewood Avenue, 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, AZ; Portland, TN; and Martinsburg, WV, 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, CT, as well as all 37 Bloomingdale's stores.
"We are extremely excited to welcome Macy's, Inc. to our Oklahoma family. Tulsa County is a thriving metropolitan community and an excellent choice to locate or expand a business. This announcement is another sign that Oklahoma is a destination-state for those seeking a location with strong economic growth and a skilled, dedicated workforce," Gov. Fallin said.
"This announcement is tremendous news for Tulsa County and the entire region," said Commissioner Smaligo. "Thousands of jobs will be created both directly and indirectly due to Macy's investment here. This is a great day for the economy of the Tulsa region."
"A Macy's fulfillment center in the Tulsa area will be an economic boon for the entire region. It's an honor for the Cherokee Nation to be a major partner in this project through a half a million dollars in financial incentives and employee recruitment," said Principal Chief Baker. "The ripple effect of this economic growth will be felt across northeast Oklahoma, and well into the 14 counties of the Cherokee Nation. The Cherokee Nation already employs 9,000 people in this region, and indirectly supports another 5,000 jobs. This is yet another way we are helping to expand our economic footprint in northeast Oklahoma, which helps Cherokees citizens and all citizens of Oklahoma. We are proud to have been an important partner in bringing this project to Oklahoma."
Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2012 sales of $27.7 billion. The company operates about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's, as well as the macys.com and bloomingdales.com websites. The company also operates 13 Bloomingdale's Outlet stores. Bloomingdale's in Dubai is operated by Al Tayer Group LLC under a license agreement.
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers' outlets, the Internet, mail-order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.