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Macy’s Establishes China Grove, North Carolina, Fulfillment Center

Macy’s, Inc. will establish its first automated fulfillment center in China Grove, North Carolina. The $584 million project is expected to create 2,800 jobs in Rowan County.

The new 1.4 million square-foot facility will ship orders directly to customers nationwide, accounting for nearly 30% of the retailer’s digital supply chain capacity once fully operational.

“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 opportunities for local residents.”

The expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. 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.

Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.

“We are delighted to welcome Macy’s and its state-of-the-art facility to North Carolina,” said Governor Roy Cooper. “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.”

Because 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.

“When companies want to expand their operations and reach customers faster, North Carolina is always a top choice,” said N.C. Commerce Secretary Machelle Baker Sanders. “In addition to an inclusive workforce training system to help increase resiliency, North Carolina boasts a prime location that places iconic brands within a day’s drive of more than 170 million customers, alleviating supply chain issues and helping them maintain a continuity of operations.”

Macy’s, Inc. operates one of retail’s largest e-commerce businesses integrated with a nationwide footprint of stores and fulfillment centers.

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