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Hudson's Bay Company invests over USD60m in robotic fulfillment system at Scarborough Distribution Center in Canada.

M2 EQUITYBITES-November 4, 2016-Hudson's Bay Company invests over USD60m in robotic fulfillment system at Scarborough Distribution Center in Canada


Department store retailers Hudson's Bay Company (TSX:HBC) on Friday announced that it has invested more than USD60m in a new state-of-the-art robotic fulfilment system at its Scarborough Distribution Center, bringing HBC to the forefront of e-commerce distribution technology.

According to the company, this highly innovative distribution centre is the first of its kind in Canada. It is expected to contribute to a seamless experience for customers, as well as further support Hudson's Bay's all-channel retail capabilities.

The new robotic system is said to be the largest Perfect Pick case shuttle system ever built and is 12 to 15 times faster than a traditional manual process. Featuring 16 200-foot long aisles, the fulfilment system utilizes the entire vertical height of the 752,000 square foot Scarborough Distribution Center, which can hold more than one million units of inventory and can process roughly 4,200 customer orders per hour. Two custom-built document handling robots automate insertion of packing lists, while 15,000 feet of conveyor and a fleet of about 300 autonomous robotic delivery vehicles (iBOTs) move inventory for storing and shipping. The company added that the new technology will enable it to deliver orders three times faster than distribution centres using the next best robotic technology.

HBC added that the Scarborough Distribution Center supports e-commerce for its Hudson's Bay department store and it employs over 300 full-time associates at the centre.

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Publication:M2 EquityBites (EQB)
Date:Nov 4, 2016
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