Macy’s plans $584 million Rowan County fulfilment center

Retailer Macy’s, Inc.will invest more than $584 million to build its first automated fulfillment center in the Town of China Grove in Rowan County.

“We are delighted to welcome Macy’s and its state-of-the-art facility to North Carolina,” North Carolina Gov. Roy Cooper said in a March 31 statement.

“When you combine our robust transportation network with our skilled workforce and great quality of life, economic development wins like these will continue to be celebrated statewide.”

Macy’s will build a new 1.4 million sq. ft. automated fulfillment center to ship orders directly to customers nationwide, accounting for nearly 30% of the retailer’s digital supply chain capacity once fully operational, the statement says.

“This state-of-the-art facility is a significant milestone for Macy’s, Inc. as we invest in strengthening our omnichannel ecosystem. It will support growth of our business as a leading omnichannel retailer,” said Dennis Mullahy, Macy’s chief supply chain officer. “We are delighted to become a member of the China Grove community and look forward to partnering with local and state officials to bring jobs and drive opportunity for local residents.”

The North Carolina Department of Commerce led the state’s efforts to support Macy’s location to Rowan County.

Macy’s expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee on March 31. Using a formula that takes into account $564 million of the company’s investment as well as the new tax revenues generated by 230 JDIG-qualified jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,313,000 spread over 12 years.

Macy’s is locating to Rowan County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $257,000 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business.