Dive Brief:

• Philadelphia-based Urban Outfitters Inc. is moving its distribution center closer to home, in Gap, PA from Tenton, SC. The rural area is home to Mennonite farmers with some 2,000 residents. 

• The 1 million square foot center will be larger, have improved technologies, and is closer to its online customers, the company says. “The new, highly automated facility will significantly increase the company's fulfillment capacity, supporting strong direct-to-consumer growth for many years to come,” the company said in a statement.

• The area where the retailer is building its new center is in a deferred-tax zone and returns the operations to Pennsylvania after its 2005 move to South Carolina. 

Dive Insight:

These days e-commerce needs efficient distribution, but speedy, efficient shipping also boosts online sales. Although the company itself doesn’t break out its e-commerce sales, they've increased nearly 20% from 2013 to 2014 to $794.9 million, according to estimates by Internal Retailer magazine. 

Urban Outfitters, including its Anthropologie, Bhldn, Free People, Terrain, and flagship brands, is working to better those online sales. This move will most likely make that easier.