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Hudson's Bay Company to Open State-of-the-Art Distribution Center in Pottsville, Pennsylvania
- New DC Enhances HBC's All-Channel Offering to Better Serve Consumers and Drive Continued Digital Growth
- Creates More Than 200 New Jobs in Pennsylvania
- Investment in Innovative Robotic Systems Positions HBC at the Forefront of Fulfillment Distribution Technology
TORONTO--(April 28, 2016)-- Hudson's Bay Company (HBC) is pleased to announce it will open a new state-of-the-art, all-channel fulfilment distribution center (DC) in Pottsville, Pennsylvania on July 1, 2016. Consistent with HBC's industry-leading digital growth strategy, the DC will utilize highly innovative robotic technology to enhance the Company's extensive all-channel retailing capabilities.
HBC plans to open the 450,000 sq. ft. Pottsville facility through a phased approach, expanding to 617,500 sq. ft. by January 2017. The DC will run best-in-class robotic retail technology that is approximately three-times faster than the typical technology utilized in e-commerce DCs. This will enable HBC to reduce costs while improving output volume and accuracy. The new DC will support all e-commerce fulfillment for HBC's Lord & Taylor and Saks OFF 5TH department store banners.
"At HBC, we are laser-focused on our all-channel strategy, and this investment leapfrogs us to the forefront of internet distribution technology," said Jerry Storch, HBC's Chief Executive Officer. "As we execute on our digital strategy, we continue to invest in innovation that enables us to serve our consumers seamlessly, lead the evolution of trends in the retail industry, and expand our business which creates new job opportunities and investment in the community."
The Pottsville DC will house corporate offices, a photo studio and a warehouse. It will initially have approximately 600 positions, which includes the creation of more than 200 new jobs in the City of Pottsville as well as approximately 390 positions that will move from the Company's existing Wilkes-Barre, PA DC. Following the Pottsville DC opening, the Wilkes-Barre facility will continue to employ approximately 750 people and will focus on supporting the retail operations of the Lord & Taylor, Saks, and Saks OFF 5TH banners. There will be a total of approximately 1,350 positions between the two facilities in the state of Pennsylvania.
Pennsylvania Governor Tom Wolf said, "HBC's decision to operate an additional distribution center in Pennsylvania, which will create hundreds of additional jobs, is a testament to our State's highly dedicated workforce and an important reflection of critical economic progress. We are delighted to work with HBC to better serve its customers and accelerate its growth." "We are grateful to Governor Wolf and the Governor's Action Team, and excited to become part of the Pottsville community," added Storch.
Following the opening of the Pottsville facility, HBC plans to introduce the technology to its Scarborough, Ontario DC this fall, making it the only company in Canada to utilize the cutting-edge systems. This is expected to result in improved productivity and throughput, as well as increased storage space, without any reduction to full-time staff.
About Hudson's Bay Company
Hudson's Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC's portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world.
In North America, HBC's leading banners include Hudson's Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium's only department store group Galeria INNO, as well as Sportarena.
HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.