SURREY, British Columbia — Mercana Furniture and Décor, a Canadian manufacturer of home furnishings, completed the purchase of a 124,676-square-foot distribution center in the City of Newport News, Va., for $8.5 million.

The company will use the facility to serve customers on the East Coast and Central United States.  Previously, Mercana had been using third-party logistics companies to cross-dock its products.

“Located near all major port terminals and railroads, Newport News is extremely favorable for inbound and outbound shipping,” said Michael Saby, chief operations officer of Mercana, adding, “We expect to cut lead times from seven to 10 business days to just two to three business days; it’s a gamechanger for our U.S. customers. We also see opportunity to centralize all returns to this facility and potentially offer a white glove service as we strive to meet our customers’ needs.”

Mercana expects to hire 26 employees for the new facility. The company indicated that product is on route to the facility and will start shipping to customers in February. The facility was previously occupied by Canon Global and has enough parking to grow the operation in the future.

The company will continue to run operations in Washington state through a third-party logistics company to serve the West Coast.

As with other companies who are investing in the region, state and local governmental agencies helped facilitate the deal. The Virginia Economic Development Partnership and the Newport News Industrial Development Authority worked with Mercana to bring the relocation to fruition. The Virginia Jobs Investment Program will provide services and funding to support new job creation, recruitment and training. The company will also be eligible to receive state benefits from the Virginia Enterprise Zone Program.

Devon Smith, president of Mercana, said, “It’s a privilege for us to be welcomed into the Newport News community. For us, success goes well beyond revenue and size, but is driven by a greater sense of community and purpose. We never want to lose sight of these values and are excited to be playing a part in cultivating sustainable business in the area. As for our customers, we’re excited to be able to meet their needs more efficiently as consumer demand continues to grow in 2022.”

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