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Chewy to close 2 fulfillment centers as it ramps up automation push

March 31, 2023

Closing the two older FCs will allow more order volume to flow through the pet goods retailer’s newer, automated facilities, CEO Sumit Singh said on an earnings call last week.

This will help the company reduce fulfillment costs. Singh said in December that fulfilling volume from Chewy’s automated FCs in Archbald, Pennsylvania, and Reno, Nevada, was roughly 18% to 20% cheaper than fulfilling it from its legacy network.

CFO Mario Marte noted on last week’s call that Chewy continues to make progress on flowing more order volume through its automated facilities. The company also has an automated facility in Belton, Missouri, and is slated to open another in Mt. Juliet, Tennessee, this year.

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