Macy's robot-equipped fulfillment center ships orders in under one day, roughly halving previous fulfillment time

Background

Macy's traditional distribution infrastructure, built over decades, struggled to match the speed and cost expectations of modern e-commerce consumers. Multiple distribution centers handling separate product categories created coordination complexity and slower per-order processing. The company needed a consolidated, highly automated facility capable of handling all categories at the speed and cost structure required to compete with online-first retailers.

What Was Implemented

• 2.5 million sq ft automated fulfillment center, China Grove, North Carolina ($640 million investment)
• Robotics for picking online orders and restocking stores
• AI-driven warehouse management system (WMS) optimizing throughput across all product categories
• Unified handling of all Macy's categories (fashion, beauty, home, toys) under one roof
• Integration of AI optimization with fulfillment routing

Results

Macy's new automated fulfillment center completes orders in less than one day on average — compared to one to one and a half days at conventional warehouses. Automation more than doubled productivity at Macy's first two automated sites. The facility handles all product categories from a single location, enabling more orders to ship in fewer boxes.

Lessons

• Consolidating multiple category warehouses into one AI-optimized facility eliminates coordination complexity and accelerates per-order throughput
• A $640 million investment in warehouse automation targets long-term competitive positioning against online-first retailers, not short-term ROI
• Category consolidation (all product types under one roof) enables single-shipment multi-category orders, reducing boxes and improving customer experience