By Amy Roach | October 30, 2025
When Macy’s Inc. cut the ribbon on its new automated distribution center in China Grove, North Carolina, earlier this month, it signaled something more than a real estate boom: It marked a strategic reset for one of America’s oldest retail brands.
At 2.5 million square feet and with an investment of more than $640 million, the facility is designed to serve as both an online fulfillment center and replenishment center for stores around the world. Macy’s network. It will ultimately handle nearly 30% of the company’s digital supply chain volume, making it the largest and most technologically advanced location in the Macy’s network.
The new site is powered by a mix of automation technologies-mobile robotsautomated storage and retrieval systems (ASRS) and goods-to-person picking, connected via an advanced system warehouse management system (WMS). This system is the first of its kind in the retailer’s network and will serve as a model for future distribution centers.
Why Macy’s is automating now
Photos courtesy of Macy’s
Why elegant robotics and AI-driven orchestration? Macy’s is struggling to keep up in an era where consumer expectations for speed, visibility and consistency have been set by Amazon. As omnichannel operations become the norm in retail, Macy’s is betting that end-to-end modernization, rather than incremental adjustments, will be the only way to compete.
Macy’s “Bold New Chapter” Strategy reflects the recognition that its traditional fulfillment model (a dispersed, manually intensive model designed for predictable store flows) cannot meet today’s volatile demand cycles. The retailer’s new goal is to prove that a department store model can evolve into a data-driven, logistics-minded business.
The China Grove location brings together previously siled processes for online fulfillment and store replenishment, with the aim of reducing redundancy, compressing order cycles and improving delivery predictability. Executives describe it as a networking model for a new era: fewer but smarter installations capable of switching from one channel to another. This flexibility is essential to balancing labor availability, cost volatility and peaks in consumer demand.
“Macy’s is building a faster, more efficient and more agile network designed to meet the needs of our customers today and tomorrow,” said Tom Edwards, COO/CFO, at the launch.
The competitive context
The move places Macy’s among a growing list of incumbent retailers that are revamping their logistics infrastructure to close the gap with digitally-focused competitors. Amazon, WalmartAnd Target have all invested heavily in robotics, WMS and algorithmic stock placement. Macy’s lags behind in automation maturity, but this installation suggests a turning point.
Beyond automation, the North Carolina location offers strategic supply chain advantages, Macy’s executives note. Proximity to major highways, regional package centers and port access via Charleston and Savannah provide a balanced footprint for order fulfillment on the East Coast.
What Supply Chain Managers Should Note
- Automation as a lever for network redesign: Macy’s isn’t just adding robots; it’s about rethinking how digital and physical accomplishment cut.
- Dual-use facilities: Combining online and in-store replenishment under one roof marks a structural shift towards omnichannel integration.
- Software-centric operations: WMS is the true differentiator, orchestrating data, workforce and automation assets in real time.
- Work Transformation: As robotics absorbs repetitive tasks, workforce development will focus on analysis, system monitoring and maintenance.
- Reference for modernization: If successful, China Grove will serve as a model for Macy’s broader distribution network, influencing how other traditional retailers approach scaling automation.