January 24, 2012, 3:12 PM

Kohl’s gallops into Texas with its latest e-commerce distribution center

The company expects to achieve $1 billion in e-retail sales in fiscal 2011.

Lead Photo

Kohl's is building a web commerce fulfillment center in Texas.

Kohl’s Corp. has signed an agreement to build a 950,000-square-foot distribution center in DeSoto, TX, to support sales on its e-commerce site, Kohls.com. The facility, expected to open this summer, will serve shoppers in Texas as well as other central and Midwestern states.

The new location will be the fourth web sales fulfillment location, joining other centers in San Bernardino, CA, Monroe, OH and Edgewood, MD. Kohl’s web sales grew 51.25% in 2010, and the company says it expects sales on Kohls.com to reach $1 billion in fiscal 2011. Upon the opening of the new Texas facility, Kohl’s will operate 13 distribution centers across the country.

For the first three quarters of fiscal 2011, ended Oct. 29, 2011, Kohl’s reported:

  • Web sales increased 36% to $555 million from $408 million in the first three quarters of 2010.
  • Total sales increased year over year 3.5% to $12.78 billion from $12.35 billion.
  • Comparable-store sales grew 1.7%.
  • Net income increased 13.6% to $711 million from $626 million in the first three quarters of 2010.

The web accounted for 4.3% of total sales compared with 3.3% in the prior year.

“This new facility will ensure that Kohl’s is able to accommodate the tremendous growth of our Kohls.com business,” says Ken Bonning, executive vice president of store planning and logistics at Kohl’s, No. 31 in the Internet Retailer Top 500 Guide.

External hiring for hourly and management positions is expected to begin March 1. Kohl’s says it plans to hire more than 200 full-time associates when the facility opens.

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