Federated to consolidate distribution centers to maintain efficiency
20 Jan '06
2 min read
Premier retailer Federated Department Stores Inc announced it will close five distribution centers in 2006 as part of a nationwide consolidation of its distribution center network to maintain efficiency and reduce duplication as it realigns its Macy's operating divisions, as previously announced.
The consolidation follows Federated's acquisition of The May Department Stores Company.
The five facilities closing in 2006 are among 31 distribution centers operated by the company.
Closing in June 2006 will be distribution centers in:
Closing in August 2006 will be distribution centers in:
- Aurora, CO (291,000 square feet; 150 employees)
- Portland, OR (340,000 square feet; 250 employees)
- Salt Lake City, UT (270,000 square feet; 30 employees)
Responsibility for merchandise handled by these facilities will be shifted to other distribution centers operated by Federated in each region of the country.
"Advances in logistics and distribution center technology allow them to handle a larger volume of goods more effectively with fewer facilities that are more regional in nature.
This helps them to deliver fresh fashion merchandise to the selling floors of their stores more quickly and consistently across the country," said Federated Vice Chair Tom Cole.
"Streamlining their distribution center network to reduce redundancy and expense also is important to their ability to deliver value to their customers and shareholders."
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