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Macy’s Taps Robots to Fulfill Orders; Aluminum Shortage Weighs on Ford

By Liz Young | WSJ Logistics Report

 

The new Macy's warehouse in China Grove, N.C., near Charlotte. PHOTO: MACY’S

Macy’s opened its largest and most-automated warehouse yet as the department-store chain looks to reset its supply chain to speed up fulfillment and grow sales.

The WSJ Logistics Report writes that the new $640 million, 2.5 million-square-foot building in North Carolina employs robots to pick clothes, shoes, cosmetics and home goods for online orders and to restock stores.

The company has been working under CEO Tony Spring to turn around a yearslong sales slump, in part by overhauling stores, closing unproductive locations and streamlining its supply chain.

Macy’s has closed one distribution center and two third-party logistics facilities over the past two years, and added automation to other warehouses as it seeks to fulfill online orders faster and ensure the products customers want are in stock at stores.

The retailer has faced steep competition in recent years from discount chains, fast-fashion retailers and e-commerce sellers that have won over shoppers with low prices and fast deliveries.

Macy’s says its new building will deliver online orders to customers faster and in fewer shipments, leaning on technology from Norwegian warehouse-automation provider AutoStore and Austrian logistics-automation company Knapp.

 

Quotable

“Customers want to see as few tracking numbers as possible.”

— Sean Barbour, senior vice president of supply chain at Macy’s
 
 
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Manufacturing

The Ford F-150 truck is assembled in Dearborn, Mich. PHOTO: CARLOS OSORIO/ASSOCIATED PRESS

A shortage of aluminum is forcing Ford Motor to change its roadmap for the year ahead.

The WSJ’s Christopher Otts reports that a fire at a supplier’s aluminum plant is expected to cost the automaker up to $2 billion during the remainder of the year. To make up for the setback, Ford plans to increase production of gas-powered F-Series pickups by 50,000 trucks in 2026 and hire as many as 1,000 workers to support the effort.

The automaker says it plans to boost output in 2026 at factories in Michigan and Kentucky to make up for lost production. It will idle production of electric F-150 trucks at a Detroit complex and send the workers next door for an extra shift producing gas-powered F-150s.

If not for the aluminum issue, Ford said it would have raised its full-year earnings guidance to more than $8 billion. Instead, it is on track for $6 billion to $6.5 billion.

  • Aluminum production at Novelis is on track to resume by the end of December. (WSJ)
 
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Number of the Day

$358 Million

Approximate third-quarter operating profit at freight forwarder Kuehne + Nagel International, down 34% when adjusted for foreign-exchange effects.

 

In Other News

Activity at factories in the central U.S. improved in October from last month. (WSJ)

Home sales rose in September to a seven-month high as buyers seized on declining mortgage rates. (WSJ)

Spending on credit cards across six of the largest issuers in the U.S. rose 7.5% in the third quarter compared with 2024. (WSJ)

Norfolk Southern’s revenue rose about 2% to $3.1 billion in the third quarter. (WSJ)

Target is cutting around 1,800 corporate roles as part of an effort to reverse stagnant sales. (WSJ)

Rivian plans to lay off more than 600 employees as the electric-truck maker tries to conserve cash. (WSJ)

Operating profit at Volvo Car climbed 11% in the latest quarter after the carmaker took measures to slash costs and preserve cash. (WSJ)

Danish forwarder DSV posted stronger-than-expected earnings for the third quarter. (Reuters)

Atlantic Container Line says new port fees could force the ocean carrier to relocate out of the U.S. (CNBC)

Amazon is rolling out an AI-powered tool that will recommend a specific product for shoppers that are overwhelmed with options. (Bloomberg)

Walmart will use radio-frequency identification technology from Avery Dennison to track meat, bakery and deli products. (Retail Dive)

The maker of Buffalo Trace bourbon, Sazerac Distillers, plans to build more whiskey-barrel warehouses in Kentucky. (Lexington Herald-Leader)

 

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

 
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