Thursday, March 31, 2022

Macy’s Announces $584 Million Investment to Build a Major East Coast Fulfillment Center in Rowan County

Raleigh, N.C.
Mar 31, 2022

Macy’s, Inc. (NYSE: M), the iconic American retailer, will invest more than $584 million to build its first automated fulfillment center in the Town of China Grove, Governor Roy Cooper announced today. Once fully operational, the company says it plans to employ 2,800 new jobs in Rowan County.

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

Macy’s, Inc. operates one of retail’s largest e-commerce businesses integrated with a nationwide footprint of stores and fulfillment centers to deliver the most convenient and seamless shopping experiences. Macy’s expansion to North Carolina will locate a new 1.4 million square-foot automated fulfillment center to 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 opportunity for local residents.”

“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.”

The North Carolina Department of Commerce led the state’s efforts to support Macy’s location to North Carolina. Salaries for the new positions will vary, but the project could create a potential annual payroll impact of more than $93 million per year for the region.

Macy’s 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.

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.

“Macy’s multimillion-dollar investment is a strong vote of confidence in Rowan County,” said N.C. Senator Carl Ford. “I am grateful for the diligent collaboration of local, state, and company officials that helped bring this project to our community.”

“This is yet another great win for North Carolina and Rowan County,” said N.C. Representative Harry Warren. “Our region is home to incredible talent that are ready to fill these new positions and support Macy’s growth strategy. Many thanks to our great local economic development folks, Rod Crider, County Commission Chairman Greg Edds, and their respective teams for the excellent work they continue to do bringing great companies to Rowan County.”

In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in the project include the North Carolina General Assembly, the North Carolina Department of Transportation, the North Carolina Community College System, Rowan-Cabarrus Community College, Rowan County, Town of China Grove, Rowan Economic Development Council, Duke Energy, Dominion Energy, Salisbury-Rowan Utilities, and Centralina Workforce Development Board.

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