Macy’s Bets Big on Automation to Reinvent Its Supply Chain

By Amy Roach | October 30, 2025

When Macy’s Inc. cut the ribbon on its new automated fulfillment center in China Grove, North Carolina earlier this month, it signaled something more than a real estate expansion: it marked a strategic reset for one of America’s oldest retail brands.

At 2.5 million square feet and with an investment exceeding $640 million, the facility is designed to serve as both a customer fulfillment hub for online orders and a replenishment center for stores across the Macy’s network. It will eventually handle nearly 30% of the company’s digital supply chain volume, making it the largest and most technologically advanced site in the Macy’s network.

The new site is powered by a blend of automation technologies—mobile robots, automated storage and retrieval systems (ASRS), and goods-to-person picking—connected through an advanced warehouse management system (WMS). The 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

Why the sleek robotics and AI-driven orchestration? Macy’s is racing to keep pace in an era where the consumer expectation for speed, visibility, and consistency has been defined by Amazon. As omnichannel operations become the retail norm, Macy’s is betting that end-to-end modernization, rather than incremental tweaks, will be the only way to compete.

Macy’s “Bold New Chapter” strategy reflects a recognition that its traditional fulfillment model (one that was dispersed, manually intensive, and built for predictable store flows) can’t meet today’s volatile demand cycles. The retailer’s new aim is to prove that a department store model can evolve into a data-driven, logistics-savvy enterprise. 

The China Grove site brings together previously siloed processes for online fulfillment and store replenishment, aiming to reduce redundancy, compress order cycles, and improve delivery predictability. Executives describe it as a network blueprint for a new era: fewer but smarter facilities capable of flexing between channels. That flexibility is key to balancing labor availability, cost volatility, and consumer demand spikes.

“Macy’s is building a faster, more efficient and agile network designed to meet our customers’ needs today and in the future,” said COO/CFO Tom Edwards at the launch. 

The Competitive Context

This move puts Macy’s among a growing list of legacy retailers retooling their logistics infrastructure to close the gap with digital-first competitors. Amazon, Walmart, and Target have all invested heavily in robotics, WMS, and algorithmic inventory placement. Macy’s lagged behind in automation maturity, but this facility suggests a decisive pivot.

Beyond automation, the North Carolina location offers strategic supply chain advantages, Macy’s executives note. Proximity to major interstates, regional parcel hubs, and port access via Charleston and Savannah provide a balanced footprint for East Coast fulfillment.

 

What Supply Chain Leaders Should Note

• Automation as a Network Redesign Lever: Macy’s isn’t simply adding robots; it’s re-architecting how digital and physical fulfillment intersect.
• Dual-Purpose Facilities: Combining online and store replenishment under one roof signals a structural shift toward omnichannel integration.
• Software-Centric Operations: The WMS is the real differentiator, orchestrating data, labor, and automation assets in real time.
• Labor Transformation: As robotics absorb repetitive tasks, workforce development will focus on analytics, system monitoring, and maintenance.
• Benchmark for Modernization: If successful, China Grove will serve as a template for Macy’s wider distribution network, influencing how other legacy retailers approach automation scale-up.