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GXO, Saks Launch DTC Ecommerce Logistics Hub

October 27, 2021

The new e-fulfillment center in Middletown, Pennsylvania, has begun shipping directly to customers nationwide as part of an innovative strategy to meet the surge in demand for luxury fashion heading into the holiday shopping season. The e-fulfillment center represents the first time the two companies have collaborated.

“When we launched Saks as a standalone ecommerce company nearly seven months ago, we set ambitious growth targets for the business and have quickly exceeded our initial expectations,” said Na Li, SVP, Logistics and Shipping, Saks. “With GXO, we are in an even better position to meet the higher demand of our business while providing fast and flawless shipping to customers throughout the peak holiday season.”

Saks is using GXO Direct, a shared space distribution network (pioneered by GXO in North America) that enables businesses to position inventory close to target customers while reducing fixed costs and transit times. The solution helps lower shipping miles and CO2 emissions by reducing the need for expedited air transportation, which is six times more carbon-intensive than over-the-road transport, while providing flexibility for rapid shifts in inventory as demand changes. The facility will deploy GXO’s advanced automation, including collaborative robots, to optimize efficiency, improve accuracy and enhance the employee experience.

“Our new Middletown e-fulfillment center allows us to respond to Saks’ ecommerce needs with speed and agility, which is particularly important at peak times such as the run-up to the holidays,” said Bill Fraine, GXO’s Chief Commercial Officer. “GXO Direct is designed to leverage our scale, capacity and innovation to give companies unprecedented flexibility in serving their customers. We believe it will continue to help drive growth for GXO.”

The model has proved beneficial for retailers like Saks that want to address the dramatic growth in online shopping. GXO Direct’s operations have rapidly expanded to include 41 locations across the U.S.

GXO successfully supported Saks during its fall Friends and Family Sale and is positioned to help the company meet its anticipated high demand through the holiday season. The Middletown facility will employ more than 350 people and is located about 10 miles southeast of Harrisburg in south-central Pennsylvania, a strategic shipping hub. The GXO-operated building is Silver LEED certified and has 400,000 square feet, of which 280,000 will be occupied by Saks. The stock deployed at the facility covers about half of Saks’ overall product base.

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