Hudson's Bay Company (HBC), parent of the Lord & Taylor and Saks department store businesses, announced last week that it will open "a new state-of-the-art, all-channel fulfillment center in Pottsville, PA on July 1. The facility will make use of robotic technology the retailer claims is three-times faster than the tech commonly used in e-commerce distribution centers.
"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, in a statement. "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."
HBC maintains that its new robotic tech will simultaneously improve output volume and accuracy at the distribution center while reducing costs. When the new center opens this summer, it will measure 450,000-square-feet. HBC plans a phased-in expansion with the center growing to 617,000-square-feet by January. The facility will support fulfillment for Lord & Taylor and Saks OFF 5th e-commerce businesses.
The retailer plans to introduce the robotic tech being used in Pennsylvania to its distribution facility in Scarborough, Ontario this fall. HBC claims the integration of the tech into the Canadian center will bring the same benefits as in the U.S. without the company having to reduce any full-time staff.