Ulta Beauty plans to open a 395,000 square-foot regional distribution center in Salt Lake City, Utah, in 2027, Chief Supply Chain Officer Erik Lopez told Supply Chain Dive.
The facility will be equipped with AutoStore warehouse technology, which is an automated solution that aims to reduce cost-per-unit, simplify product flow, the fulfillment process and improve productivity across all operations, per Lopez.
The distribution center aims to service 180 stores across the Pacific Northwest and Mountain Plains region, in addition to e-commerce demand as part of Ulta’s omnichannel fulfillment network, Lopez said. The Utah facility is also set to create more than 400 new jobs.
“The Salt Lake City facility helps close a key gap in our Northwest network, brings products closer to guests and improves delivery speed for the stores and eCommerce orders it supports by up to one full day,” Lopez said. He added that the facility aims to help balance growing demand and support its distribution center in Fresno, California with additional capacity.
The new distribution center fits into a larger push to overhaul its supply chain, with Lopez detailing in 2024 plans to retrofit its distribution centers and adjust its U.S. supply chain footprint.
Last month, Ulta CEO and Director Kecia Steelman told analysts that the beauty retailer plans to continue rolling out more automation across its existing facilities. This includes systems and processes investmentments to drive inventory productivity, alongside sales.
The Salt Lake City facility marks Ulta’s eighth distribution center, the retailer told Supply Chain Dive. Others include Chambersburg, Pennsylvania; Bolingbrook, Illinois; Greer, South Carolina; Fresno, California; Dallas; Greenwood, Indiana; and Jacksonville, Florida.
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