Federated Department Macy’s stores announced it will invest an additional $100 million to support its direct-to-consumer businesses, including macys.com, bloomingdales.com, Bloomingdale’s By Mail, macysweddingchannel.com and bloomingdalesweddingchannel.com. The amount is incorporated in Federated’s total capital spending plans, which include $1.2 billion in 2007 and $1.1 billion in 2008.
Rapid growth in online sales is driving the investment, said Federated chairman, president and CEO Terry J. Lundgren. "Our online sales continue to grow at a rapid pace. Lundgren expects direct-to-consumer businesses to grow more than $1 billion in sales by 2008, up from $620 million last year.
The company also plans to build a 600,000-square-foot distribution center in Goodyear, Ariz., as the West Coast shipping point for Macys.com. Construction will begin this spring and is scheduled to be completed in a year.
These new capital expenditures do not include a new 600,000-square-foot distribution center near Portland, Tenn., slated to open this month.