Macy’s is locating in Lathrop.

But it’s not a store.

The nation’s 21st largest retailer by dollar volume based on 2021 data compiled by the National Retail Federation is opening a 272,000-square-foot logistics/distribution center.

Macy’s signed a long-term lease for space at 3400 West Yosemite Avenue in the Phelan Gateway Industrial Park.

The location is west of McKinley Avenue within a mile of Manteca’s city limits at the ACE station on West Yosemite.

“Macy’s new California Central Valley location provides the company with a state-of-the-art facility offering many benefits, including continued nearby accessibility to the customer base in the Bay Area Region, Northern California, and Central Valley,” noted Executive Managing Tyson Vallenari.

Macy’s currently has distribution centers in Hayward and Sacramento as well as the City of Industry in Southern California.

And while Macy’s did not indicate in its press release what its plans were for those two locations, it would make sense if one or both would be closed as Macy’s Northern California footprint is not growing in terms of locations.

The company could also be gearing up for further expansion into e-commerce.

If one of both  distribution centers are consolidated into the Lathrop location, it would underscore what could be an emerging trend.

Retailers with distribution centers located in both the Sacramento and San Jose-Oakland regions of the 18 million consumer strong Northern California Metroplex could look toward the  South San Joaquin County area to consolidate distribution centers to reduce costs take advantage of the equal distance to San Jose, Oakland/San Francisco, and Sacramento that is offered by locating in Tracy, Lathrop, Stockton, and Manteca.

Vallenari also point out the future distribution center is in close proximity to both the Union Pacific and Santa Fe  Intermodal Facilities, multiple regional international airports (Stockton, Sacramento, Oakland, San Jose, and San Francisco) as well as multiple Ports located such as Oakland, Stockton, and Sacramento.

“And with immediate access to Interstate 5 and Highway 99, the property is also conveniently accessible to Los Angeles and the San Pedro Bay Port Complex, along with other major markets throughout the West Region,” Vallenari added.

Macy’s is a modern department store with celebrated nameplates Macy’s, Bloomingdale’s and Bluemercury.

There are Macy’s stores in Tracy, Modesto, and Stockton.

Cushman & Wakefield brokered the lease agreement.

Phelan Development Group owns the 171-acre project  of property to the north of the 120 Bypass near both the Yosemite Avenue interchange and the McKinley Avenue interchange that is targets for completion this year.

The initial warehouse is visible from the 120 Bypass westbound lanes snuggled against the Altamont line of the Union Pacific Railroad.

At build out, the Phelan project will have 10 concrete tilt-up buildings totaling just over 3 million square feet of warehouse space. 

When the Phelan endeavor is included with the South Lathrop Commerce Center on the other side the 120 Bypass, Lathrop is set to have nearly 6.5 million square-feet of new warehouse buildings added with those two projects.

The anchor tenant in the South Lathrop Commerce Center is the 1.1 million square-foot Wayfair distribution center.

The e-commerce company headquartered in Boston specializes in home goods

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com