TOANO, VA - Lumber Liquidators (NYSE: LL), says it will spend up to $50 million on constructing a 1 million square foot East Coast distribution center in Virginia, consolidating other operations there.
On the West Coast, the 500,000 square foot West Coast center will open in Pomona, CA in November.
Lumber Liquidators, which calls itself the largest specialty retailer of hardwood flooring in North America, says the expansion results from its growing numbers of retail outlet - which now number 305 - and increased sales volume. Lumber Liquidators sales of solid and engineered hardwood, bamboo, cork, laminate and resilient vinyl rose 22% to $267 million in the latest quarter; profits rose 68%. It expects to do nearly $1 billion in business.
Lumber Liquidators agreed to acquire 110 acres of undeveloped land within the White Oak Technology Park in Henrico County, VA, which will consolidate and expand upon the 750,000 square feet of distribution space across four separate buildings it uses in Hampton, VA.
In addition to capital expenditures of up to $46 million - $5 million for the land - the new distribution center will see $4 million expended on equipment, computer hardware and software. Lower transportation and occupancy costs are expected to improve will margins and availability of flooring at its stores.
The 500,000 square foot distribution center in Pomona, CA begins operating in November 2013, and will be fully operational in the first quarter of 2014. A total $1.8 iwill be spent on it.
Have something to say? Share your thoughts with us in the comments below.