Amazon is growing on-demand services after reporting a 20% sales increase in 2015.
The Pennsylvania facility will top 1 million square feet and employ at least 500.
Urban Outfitters Inc. continues to expand its distribution and fulfillment capabilities in its drive to generate half of all sales online by 2017. The apparel and home accessories e-retailer announced today it will build a 1.2-million-square-foot distribution and fulfillment facility in Gap, PA. It will be the retailer’s third distribution center dedicated to fulfilling web orders.
Gap is about an hour’s drive from Philadelphia, where Urban Outfitters keeps its corporate headquarters. Urban Outfitters also announced today that it will expand its corporate office, adding 2,000 jobs there. Once completed, the new distribution facility in Gap will employ at least 500 workers. Urban Outfitters says it will spend more than $200 million on both projects.
Last fall Urban Outfitters, No. 48 in Internet Retailer’s Top 500 Guide, opened a $55 million 500,000-square-foot distribution center for web orders in Reno, NV. It also operates a facility in South Carolina. Last year the retailer also began fulfilling some web orders directly from stores. Urban Outfitters CEO Richard Hayne said in May that fulfilling web orders from stores contributed approximately $9 million in additional business during the first quarter. Last year he said that Urban Outfitters would be investing in its distribution and fulfillment capabilities and wanted to soon be able to deliver orders in two days to 80% of its U.S. customers.
“These projects will provide the additional infrastructure necessary to achieve our corporate growth objectives for years to come,” Hayne said today in announcing the Pennsylvania expansions.
Urban Outfitter’s e-commerce sites include UrbanOutfitters.com, Anthropologie.com, FreePeople.com, ShopTerrain.com and Leifsdottir.com, among others.