Macy's to Open New Distribution Center, Relocate Furniture Clearance Store

Furniture World Magazine

Macy's, Inc. announced that it plans to open a new, state-of-the-art distribution center in Minooka, IL, approximately 50 miles southwest of Chicago. The facility, initially employing an estimated 210 full- and part-time associates, is scheduled to open in early spring 2008. It will be operated by the Macy's Logistics and Operations division. As the new, 850,000-square-foot facility in Minooka is phased-in, Macy's will phase out operations at its existing distribution center on Diversey Avenue in Chicago, which is expected to close in spring 2008. "The Minooka site was selected following an exhaustive search of potential locations in Chicago and the surrounding region. We are proud to have elected to keep this facility in the state of Illinois and the Chicago area," said Macy's, Inc. Vice Chair Tom Cole. "We had very specific requirements for purchasing an existing facility that would be highly efficient and could move a larger volume of goods more quickly to the sales floors of our stores. "Minooka represented an optimal combination of easy access to interstate transportation networks serving the region and the near-term availability of a large, one-story distribution facility with room for expansion to serve future needs of our rapidly expanding direct-to-consumer businesses," Cole said. Macy's, Inc. has signed an agreement with Opus North Corporation for the purchase of the newly built facility on 48.6 acres at 600 Mid Point Rd. in Minooka. "While our current Chicago distribution center - which contains 1.55 million square feet spread over six stories of a building developed in stages since the 1930s - has served the company well for decades, it is antiquated and inefficient for moving merchandise to meet current standards in the retailing industry. We remain deeply committed to the Chicago community, and believe that the current distribution center location on Diversey Avenue makes the site conducive to redevelopment. We intend to offer the property and building for sale and to work cooperatively with the city of Chicago to find a buyer who will pursue a productive re-use for the community," Cole said. The Macy's North furniture clearance store currently located in the distribution center will be relocated to leased space in a retail center near Fox Valley Mall in Aurora, IL. The new furniture clearance store, expected to open in the fourth quarter of 2007, will employ about 10 associates, the same number as the current Chicago furniture clearance center. Approximately 350 workers currently are employed at the existing distribution center and furniture clearance center at 4000 West Diversey Ave. in Chicago. Macy's will offer employment to as many workers as possible elsewhere in the company. Those who cannot be accommodated or who choose not to accept other positions will be eligible for severance and outplacement assistance. Aside from the distribution center, Macy's, Inc. employs about 6,500 associates in the Greater Chicago metropolitan area, including about 2,400 in the city of Chicago. Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales of $27 billion. The company operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com, bloomingdales.com and Bloomingdale's By Mail. Prior to June 1, 2007, Macy's, Inc. was known as Federated Department Stores, Inc.