JCPenney to Open NorCal Logistics Center

To help ease the effects of busy port traffic in Southern California and elsewhere, Dallas-based JCPenney this summer will open a 436,000-square-foot distribution center in Northern California so that it can begin receiving more imports through the Port of Oakland.

The retailer hopes to have the cross-dock facility open by August. The center is located in Lathrop, Calif., near Stockton. The operation will occupy an existing building in the Crossroads Commerce Center. Modifications to the building and installation of equipment are expected to begin in May. About 100 workers will begin work in July, said the retailer.

“With over 1,000 stores and approximately 150 stores opening in the next three years, we need additional capacity in our logistics network to service the growth of our business,” said Jim LaBounty, senior vice president of supply-chain management. “We expect the added capacity and port diversification will help us reduce transportation time for our direct imports and support the company’s long-range growth plans.”

JCPenney’s current logistics network includes facilities in Buena Park, Calif.; Statesville, N.C.; Alliance, Texas; Atlanta; and North Bergen, N.J. The company also operates a network of 13 regional support centers, each servicing 80 to 125 stores; four direct-distribution centers, fulfilling orders from the catalog and the Web site (www.jcp.com); and four retail furniture distribution centers. JCPenney currently operates 1,033 units in the United States and Puerto Rico.

Robert McAllister