Toano, Va. -- Lumber Liquidators announced the next phase in its multi-year supply chain optimization initiative with the planned construction of a new distribution center in Henrico County, Va., and the leasing of a new West Coast distribution center in Pomona, Calif.
Lumber Liquidators plans to construct a 1.0 million-sq.-ft. distribution center in suburban Richmond to consolidate and enhance its current East Coast operations. It is expected to be completed in the third quarter 2014 at a cost of between $46 million and $50 million for the facility and equipment.
Upon full implementation of the facility, the company expects that significant increases in operational efficiency and unit flow, together with lower transportation and occupancy costs, will benefit operating margin and further strengthen the availability of product to its stores.
The company will lease a 500,000-sq.-ft. facility in Pomona, Calif., that it expects to be operational in November. It said it will record costs of between $1.3 million and $2 million in the second half of 2013 in the move.
“The consolidation of our East Coast distribution facilities into a new, larger location and the opening of a West Coast distribution center will ensure we can support the tremendous growth of our business and improve service to our expanding customer base,” said Robert M. Lynch, president and CEO, Lumber Liquidators. “These new facilities will provide a more efficient supply chain structure, allowing us to improve the availability component of our industry-leading value proposition, as well as increase our labor productivity and lower our transportation costs.”