Kohl's to open sixth distribution center

The 1.2 million square foot Ohio shipping center is Kohl's largest distribution center and will be dedicated to handling orders from Kohl's e-commerce website, filling and shipping orders.

The next-generation factory leverages automation and technology to process and deliver online orders faster and more efficiently. Construction of the facility began in early 2019 , was temporarily paused in 2020 due to the pandemic , and resumed in 2021.

The new e-commerce fulfillment center supports the company's plan to manage logistics costs at a lower level while further leveraging stores to drive customer pickup and get closer to customers. According to Kohl's, its technology will make the facility three times more productive than traditional e-commerce fulfillment centers.

By eliminating five touch points from the entire logistics lifecycle of an online order , orders can be processed more efficiently with minimal logistics costs while maintaining accuracy .

In 2017, Kohl's opened its fifth e-commerce fulfillment center in Plainfield, Indiana. Based on the learnings from that facility, Kohl's made improvements to its design to increase speed and efficiency in fulfilling orders at its sixth facility.

In addition to the new Etna, Ohio, and Plainfield, Indiana, plants, Kerr also operates an e-commerce fulfillment center in San Bernardino, California .

In response to growing online demand and the growth of digital sales, Kohl's has invested in building an omnichannel platform over the past few years. By 2020, Kohl's stores fulfilled nearly 45% of digital orders through free omnichannel services, including pickup , in-store pickup and home delivery.

Paul Gaffney, Kohl's senior executive vice president, chief technology officer and head of supply chain, said: "Over the past five years, Kohl's digital sales have grown more than 100%, and our investment in a highly efficient sixth e-commerce fulfillment center will meaningfully increase our peak shipping capacity. The new facility enables Kohl's to fulfill orders more efficiently through automation and modern technology, bringing Kohl's products geographically closer to our customers and ultimately getting our great products to our customers faster. "

With the opening of the new e-commerce fulfillment center, Kohl's said it will bring more than 400 new jobs to the Columbus area in the coming months, and plans to add thousands of seasonal positions in the second half of 2021 to support growing digital demand during peak season.