topic Re: QVC will not rebuild a North Carolina distribution center in Community Chat

QVC will not rebuild a North Carolina distribution center

sunshine45 — Fri, 08 Apr 2022 02:01:46 GMT

via WRAL 4/6/2022

QVC has decided to not rebuild its distribution center in Rocky Mount after a five-alarm fire tore through most of the building in December.

A release distributed on Tuesday described the company's decision on the facility, which was built more than 20 years ago. The company said it may lease or sell the land.

"After months of assessment and careful consideration, we have made the difficult decision not to rebuild our facility in Rocky Mount in the wake of a tragic fire in December 2021," the update read. "While we will not rebuild, there has been no decision made on our future plans for the property."

When asked about the decision, a Qurate Retail Group representative said "this decision was part of a comprehensive analysis of our overall fulfillment center network."

QVC won't rebuild Rocky Mount distribution center; company mulling over site's future :: WRAL.com

Re: QVC will not rebuild a North Carolina distribution center

KingstonsMom — Fri, 08 Apr 2022 02:15:05 GMT

@sunshine45

That's really sad to hear, Rocky Mount has a high unemployment rate from what I read in news reports after the fire.

That means a lot of families lost their income without traveling a good distance.

I hate to hear that....

Re: QVC will not rebuild a North Carolina distribution center

Queen of shop — Fri, 08 Apr 2022 02:15:28 GMT

@sunshine45 Very sad. This will put so many out of work and cause a lot of them to move.

Thanks for posting.

Re: QVC will not rebuild a North Carolina distribution center

ValuSkr — Fri, 08 Apr 2022 02:21:12 GMT

Only twenty years after they decided it was a good idea to have a distribution center in Rocky Mount, it's not a good idea. I wonder what changed. I guess they have better uses for their insurance proceeds

Re: QVC will not rebuild a North Carolina distribution center

Mz iMac — Fri, 08 Apr 2022 02:21:25 GMT

It's possible Q may not be able to afford to rebuild because of possible lawsuits, cost of insurance payouts to the survivors, etc.?

Does anyone know the cause of the fire?

Re: QVC will not rebuild a North Carolina distribution center

Kachina624 — Fri, 08 Apr 2022 02:33:28 GMT

Not too surprising considering the company is operating at a loss. They may not need all that warehouse space. As @Mz iMac said, maybe they can't afford it.

Re: QVC will not rebuild a North Carolina distribution center

Annabellethecat66 — Fri, 08 Apr 2022 04:32:44 GMT

That's too bad. A lot of people probably lost their jobs.

Re: QVC will not rebuild a North Carolina distribution center

meallen616 — Fri, 08 Apr 2022 08:27:40 GMT

@sunshine45,

Thank you for this post, but, sorry they are not rebuilding.

Re: QVC will not rebuild a North Carolina distribution center

Tinkrbl44 — Fri, 08 Apr 2022 08:30:15 GMT

@ValuSkr wrote:
Only twenty years after they decided it was a good idea to have a distribution center in Rocky Mount, it's not a good idea. I wonder what changed. I guess they have better uses for their insurance proceeds

@ValuSkr

Surely you must realize that the price to rebuild at today's costs might easily make it close to double what it originally cost them.

I'm speculating that it might be a better use of their funds to add on more warehouse space to an already-built location. It could be as simple as buying the land next door to a current location. Just a guess, but it would be a better dollars and cents decision for the company.

Re: QVC will not rebuild a North Carolina distribution center

phoenixbrd — Fri, 08 Apr 2022 10:31:14 GMT

Yes, today's economic challenges most likely played a part in this decision. Sad for those losing their jobs.

Re: QVC will not rebuild a North Carolina distribution center

Johnnyeager — Fri, 08 Apr 2022 11:10:41 GMT

There were about 2,000 permanent employees, more seasonally during the holidays.

The Rocky Mount Chamber of Commerce reports that 60% of these have found alternative employment.

Re: QVC will not rebuild a North Carolina distribution center

ValuSkr — Fri, 08 Apr 2022 13:49:56 GMT

@Tinkrbl44 wrote:
@ValuSkr wrote:
Only twenty years after they decided it was a good idea to have a distribution center in Rocky Mount, it's not a good idea. I wonder what changed. I guess they have better uses for their insurance proceeds
@ValuSkr

Surely you must realize that the price to rebuild at today's costs might easily make it close to double what it originally cost them.

I'm speculating that it might be a better use of their funds to add on more warehouse space to an already-built location. It could be as simple as buying the land next door to a current location. Just a guess, but it would be a better dollars and cents decision for the company.

@Tinkrbl44 Surely you must realize that a lot of thought goes into siting a distribution center, namely location, location, location. For example, proximity to highways and transportation hubs, to other company warehouses, to customer bases, and so on. The "cost of building" is not usually the only - or even the over-riding - consideration. It's just one of many.

Re: QVC will not rebuild a North Carolina distribution center

CalminHeart — Fri, 08 Apr 2022 11:38:54 GMT

It was more profitable to fire those employees and run. Typical big business.

Re: QVC will not rebuild a North Carolina distribution center

Krimpette — Fri, 08 Apr 2022 13:10:01 GMT

With the cost of construction, building supplies, labor shortages, etc., I'm surprised any business would consider building right now.

Re: QVC will not rebuild a North Carolina distribution center

Foxxee — Fri, 08 Apr 2022 13:24:56 GMT

No mention QVC might build in a different area, so we don't know if they will or will not build elsewhere or add on to an existing facility. This was their second largest fulfillment center.

Deciding not to rebuild there might be a good decision. It's all about location, location, location. One reason would be a lot of employee theft at this facility.

Re: QVC will not rebuild a North Carolina distribution center

millieshops — Fri, 08 Apr 2022 14:41:09 GMT

When Rocky Mount was built, we were in a very different retail environment. I have no idea whether the location makes real sense today. Maybe the land has become more valuable if it's used for a different purpose.

I can't remember the last time anything was shipped to me from Rocky Point. Seems as if most of my AD Shipments come directly from the vendors.

Re: QVC will not rebuild a North Carolina distribution center

RollTide2008 — Fri, 08 Apr 2022 14:56:41 GMT

It also could be because they’ve found another facility to meet their needs.

Re: QVC will not rebuild a North Carolina distribution center

Effie54 — Fri, 08 Apr 2022 14:57:09 GMT

That's sad to hear. I have read that the Q is operating at a loss. But the new upper management just doesn't seem to be getting the job done. I've read about companies where they hire a CEO, a sharpshooter, and the company has turned around full scale. I'm wondering if the lack of revenue for QVC is due to the nature of the items showcased, the prices, and the lack of quality. At some point people are going to stop paying 50 and $60 for a polyester top by Susan Graver.

Re: QVC will not rebuild a North Carolina distribution center

KatieB — Fri, 08 Apr 2022 19:06:14 GMT

@Queen of shop wrote:
@sunshine45 Very sad. This will put so many out of work and cause a lot of them to move.

Thanks for posting.

@Queen of shop I doubt many of those people could afford to move. It's a poor area of our state - mostly agricultural types of jobs.

Re: QVC will not rebuild a North Carolina distribution center

KatieB — Fri, 08 Apr 2022 19:09:38 GMT

@millieshops wrote:
When Rocky Mount was built, we were in a very different retail environment. I have no idea whether the location makes real sense today. Maybe the land has become more valuable if it's used for a different purpose.

I can't remember the last time anything was shipped to me from Rocky Point. Seems as if most of my AD Shipments come directly from the vendors.

@millieshops I believe it's mostly beauty types of items that come from this warehouse. Beauty and well-being items.