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.
Source: Retail Dive
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