Federated to Open Arizona Web Fulfillment Facility

February 18, 2007  by in UnCategorized   

By Home Furnishings Business in Customer Service on February 2007 Federated Department Stores plans to open an Internet fulfillment center in Goodyear, Ariz., by 2008, the Cincinnati Enquirer reported last week.

The move is part of an effort to satisfy growing orders on Macys.com, the Web arm of Cincinnati-based Federated. A similar, $130 million Macys.com fulfillment center will begin operation in Portland, Tenn., this spring in order to be ready for this year’s Christmas shopping season.

Goodyear city officials anticipate Federated will spend $100 million on the Arizona fulfillment center, which will be located around 20 miles from downtown Phoenix and enable Federated to manage its own Web fulfillment from order to delivery. About 500 people will be employed--another 350 in high season--at the 600,000-square-foot center, which is expected to be open for Christmas 2008. A potential second phase could increase that size to almost 1 million square feet.

The Arizona location also will give Federated an easier way to serve Web customers in the West. The Tennessee center was chosen for its proximity to Eastern, Southern and Midwest markets.