Jerome's adding distribution center
Clint Engel -- Furniture Today, January 23, 2005
San Diego — Jerome's will open a 400,000-square-foot distribution center and headquarters here, giving the retailer the space and systems it needs to grow.
The five-store, Top 100 company expects the complex will be operational by the end of March in the Rancho Bernardo industrial area, replacing its smaller downtown space, which is spread over several blocks and several attached buildings. The old space will be put up for lease.
While Jerome's has no immediate plans to open more stores, it's needed the new warehouse for years, said Ann Navarra, co-owner of the family-run promotional to midpriced retailer. She said Jerome's outgrew its current warehouse five or six years ago and has been looking for a larger space for some time.
In addition to updated inventory tracking and computer systems, the new distribution center will have high ceilings and 60 bay doors, versus the seven Jerome's has now. The retailer sends out 30 to 35 delivery trucks every day, and space is so tight it often gives factories two- to five-day notice on when shipments can be received.
The new facility should mean less handling and less damage, Navarra said, adding, "I think we should easily be able to handle a good 10% increase in sales the first year."
Jerome's is investing more than $30 million in the new facility, including acquisition of the building on the 24-acre site and all equipment and fixtures. Its sales hit about $114 million last year, up from an estimated $110.5 million the year before.
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