La-Z-Boy plans to invest $23 million in a manufacturing expansion and new distribution center in Neosho, Missouri, according to an Aug. 31 press release from the state’s Department of Economic Development.
The 150,000-square-foot distribution center will serve as a central hub in the furniture maker's U.S. supply chain network. The manufacturing facility, one of the company's oldest, builds a significant portion of customized La-Z-Boy furniture, Melinda Whittington, president and CEO of the retailer, said in the release.
"It was clear that expanding our presence in the city with a distribution center would deliver enhanced operational efficiencies for the enterprise and also fortify an already strong consumer experience," Whittington said.
The project is projected to create up to 100 jobs. La-Z-Boy is expected to receive $356,304 through withholding or tax credits through the Missouri Works Program, pending verification of program requirements, the release says. La-Z-Boy is Neosho's largest manufacturing employer.
The new distribution center was announced amid La-Z-Boy's multiyear distribution overhaul. The project will consolidate 15 regional U.S. centers into three centralized hubs, one each in the West, Midwest and East. The company opened its western hub in Arizona in 2025 and expects to largely complete the others this year.
The network redesign is expected to eventually lift margins by cutting warehouse square footage 30% and heavy-furniture delivery mileage 20%, according to a recent earnings call.
Other brand manufacturers are also pursuing operational and financial gains from distribution network changes.
Hasbro opened a 600,000-square-foot facility in Georgia this year to reduce its distribution nodes from five to three. Procter & Gamble has launched a multiyear plan to connect 50 distribution centers in Europe to a single warehousing center.
PepsiCo, meanwhile, is testing warehouse consolidation for its snacks and beverages business units in North America.
