JCPenney reveals 40 Million dollars investment in supply chain upgrades

Department store chain JCPenney has revealed a 40 million USD upgrade to its 1.67 million square foot distribution center in Reno, Nevada.

The upgrade is part of the retailer's 1 billion USD self-funded reinvestment strategy introduced last year. The strategy aims to improve equipment and infrastructure to boost order efficiency and speed for online shoppers.

One of the key features of the upgrade is the implantation of the Joey Pouch sorting system, a state-of-the-art computerized induction, sorting, and packing system. Featuring advanced induction technologies, a fully automated sorter for assembling orders, and a new packing system that prints invoices and shipping labels at each station, this new system is expected to enhance the customer experience by increasing order accuracy and speeding up shipping times. The upgrade is designed to not only enhance customer experience but also significantly reduce associate training time, boosting productivity and allowing greater staffing flexibility.

“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. 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,” said JCPenney CEO Marc Rosen in a statement. “When we announced our 1 billion USD reinvestment strategy last year, this is exactly the type of upgrade we envisioned for our supply chain. This new system will provide JCPenney with the best-in-class equipment and technologies to better support our associates and serve our customers.”

Following the upgrade, the Reno distribution center will continue to provide hundreds of local jobs, with no impact on existing roles due to the investment. JCPenney’s reinvestment strategy focuses on enhancing digital capabilities, upgrading in-store technology and facilities, and optimizing the supply chain. Since August 2023, the retailer has announced over 100 store upgrades and revamped its Rewards and Credit program. The Reno distribution center upgrade is the latest step rolled out by JCPenney to streamline its operations.