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Federated will build Tennessee distribution center

Federated Department Stores will build a new 595,000-square-foot distribution center in Portland, Tennessee, designed specifically to handle the company’s direct-to-consumer orders.

The center is a key element in Federated’s plan over the next two years to support growth in its online purchasing capacity at macys.com and other sites. Federated operates about 950 department stores and 720 bridal and formal wear stores under the names Macy’s, Bloomingdale’s, Lord & Taylor, Marshall Field’s, and others.

“Once in place, the Portland distribution center will allow us to receive goods and process and ship online orders to customers quickly and efficiently,” said Federated Vice chair Tom Cole. “Our company also will benefit from the availability of a quality workforce and low operating costs in northern Tennessee.”

“We congratulate and wish Federated every success as they pursue significant economic growth opportunities through the addition of this new center,” said John Bradley, TVA Senior Vice President of Economic Development. “This is an economic development win because of the team effort coordinated by [so many] agencies.” Other partners included the Springfield/Robertson County Chamber, Springfield Industrial Development Board, Middle Tennessee Industrial Development Association, and City of Portland Office of Community Development.

Construction at the Kentucky-Tennessee Industrial Park is scheduled for completion in spring 2007. Federated’s investment is expected to be over $72 million, and the facility will employ about 500-600 people. TVA’s economic development, customer service, and transmission organizations were instrumental in securing the location for Federated.