News

Reports: Target takes steps in response to breach

BY Dan Berthiaume

Minneapolis – Target Corp. continues to take steps in response to the holiday data breach that may have exposed the personal and financial data of up to 110 million consumers to hackers. The Wall Street Journal reports that Target shut down remote access to two internal sites in the aftermath of the massive attack.

The two sites are an employee-facing human resources site called eHR and a supplier-facing site called Info Retriever. Target reportedly reopened supplier access to Info Retriever the week of Jan. 13. Employees can still gain access to eHR via in-store kiosks, while suppliers relied on email access to information between Dec. 19 and an unspecified date the week of Jan. 13. A Target spokesperson told the Wall Street Journal limiting remote access to the sites was part of the retailer’s response to the breach.

In addition, the Wall Street Journal reports that Target is ready to move forward with issuing chip-based credit cards. Target ran a three-year, $40 million pilot of chip-based credit cards with Visa but ended the program in 2004.

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OPERATIONS

Nordstrom begins work on Pennsylvania fulfillment center

BY Dan Berthiaume

Seattle – Nordstrom plans to open its third fulfillment center at Conewago Industrial Park in Elizabethtown, Pa. Work has begun on the approximately 672,000-sq.-ft. building, with an additional 470,000-square foot mezzanine, which is scheduled to open in summer 2015, and the company is taking bids.

In its first three years, the new fulfillment center will offer nearly 400 full-time positions and additional opportunities for part-time and seasonal roles. In the future, Nordstrom expects to increase hiring up to 700 full-time roles or more as the business continues to grow.

The fulfillment center will enable faster delivery for Nordstrom.com, Nordstrom mobile app and Nordstrom catalog orders, particularly for those from customers on the East Coast. The new facility joins the company’s existing fulfillment centers in Cedar Rapids, Iowa and San Bernardino, Calif. Since 2009, Nordstrom has operated with an integrated inventory platform between its stores and online, as well as the ability to fulfill online orders from any of its 117 full-line stores across the country.

The fulfillment center is located at Conewago Industrial Park, which is owned by Martin and William Murray, and will be built by H&M Company, Inc. Jones Lang LaSalle served as the broker for Nordstrom.

"Speed of delivery is simply just part of our customers’ expectations of what good service means today," said Jamie Nordstrom, president of Nordstrom Direct. "This is an ideal location to add to our fulfillment capabilities and improve the delivery experience for our customers. E-commerce is the fastest growing area of our business and this is another example of how we’re investing in people and capabilities to help us support this growth and responding to our customers’ changing definition of service."

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REAL ESTATE

Bon-Ton extends Boston Store, HQ lease in Milwaukee

BY Dan Berthiaume

York, Pa. – The Bon-Ton Stores, Inc. has reached an agreement with the city of Milwaukee to extend the lease for its Boston Store location in The Shops of Grand Avenue, Milwaukee, contingent upon the city providing financial contributions from its downtown Tax Increment Financing district.

This extended store lease term would coincide with the extended lease term for the company’s corporate offices located above the Boston Store with both leases expiring Jan. 31, 2018. These financial arrangements require public review and City Council approval, which should be completed by April 2, 2014. In the absence of this financial support, the Boston Store lease will expire Jan. 31, 2015.

“This agreement says a lot about both the history and the future of this part of Wisconsin Avenue,” Rocky Marcoux, the City’s Commissioner of Development said. “It maintains a long-standing and valued retailer at this location, and it sends a message to other developers and investors that this neighborhood offers great opportunity moving forward.”

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