JCPenney Upgrading Nevada Distribution Center
JCPenney has invested $40 million to upgrade its Reno, Nev., distribution center, the latest effort in the retailer’s self-funded $1 billion reinvestment strategy announced in 2023.
The centerpiece of the upgrade is implementing the Joey Pouch sorting system, a state-of-the-art, computerized induction, sorting, and packing system. It includes new induction process technologies, a fully automated sorter to assemble orders, and a new packing system that provides for invoice and shipping label printing for each order in the station. The upgrade is expected to improve the customer experience by ensuring that online orders are completed with higher accuracy and shipped out more quickly, company officials said.
In addition to improving the customer experience, the upgrade at the 1.67 million square foot facility is expected to reduce associate training time, leading to greater productivity, and will allow for more flexibility in staffing across the facility. The Reno distribution center will continue to provide hundreds of local jobs to the surrounding community with no impact on existing roles due to the technology upgrade.
“The Joey Pouch system deployed in our Reno Distribution Logistics Center showcases an updated technology and we’re proud to bring this state-of-the-art machinery to our facilities,” said Marc Rosen, JCPenney’s CEO.” We look forward to experiencing its impact on our customers, associates, and company as we honor our commitment to making every day count for our customers. When we announced our $1 billion reinvestment strategy last year, this was exactly the type of upgrade we envisioned for our supply chain.”
JCPenney’s overall reinvestment strategy includes enhancing its digital capabilities, in-store physical and technology upgrades, and supply chain optimization. Since last August, the company has also announced more than 100 store upgrades and its refreshed Rewards and Credit program. The improvements to the Reno distribution center represent the latest progress in streamlining supply chain operations and will help ensure customers are getting the service they deserve when ordering online through jcpenney.com.
