Recently, department store retailer Macy's, Inc. (M) announced that it will construct a fulfillment center near Owasso in Tulsa County to enhance its omnichannel sales growth.
The construction of this center is likely to commence in spring 2014 and Macy’s hopes to start operations in April 2015 with primary shipping orders placed in summer 2015. Macy’s is investing $170 million for the 1.3 million-square-foot facility including investment in most modern technology required for warehouse management and material handling.
The center will create nearly 1,500 full time and part-time job opportunities. Additionally, 1,000 or more temporary recruitments would take place to cater the online orders during the busy holiday season. Construction of the facility would provide 350-500 jobs.
To keep up with the changing trends, Macy’s is boosting its omnichannel integration. The new distribution center is part of the company’s initiative to expand its presence in northeastern Oklahoma.
Moreover, the company’s customer-centric localization initiative called “My Macy’s” is impressive. The program aims to improve comparable store sales (comps) and reduce operating expenses, with stores and merchandise assortments focusing on local customer needs and preferences.
We believe that Macy’s sustained focus on price optimization, inventory management, merchandise planning and private label offering are the primary catalysts driving traffic, facilitating in meeting customer-oriented demand and improving in-store shopping experience.
In an attempt to increase sales, profitability and cash flows, the company has been undertaking steps such as integrating operations, consolidating divisions as well as developing e-Commerce business and online order fulfillment centers.
Currently, Macy’s carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the retail sector include Conns Inc. (CONN), Hanesbrands Inc. (HBI) and PriceSmart Inc. (PSMT). While Conns and Hanesbrands have a Zacks Rank #1 (Strong Buy), PriceSmart holds a Zacks Rank #2.
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