Finding the right location to establish a business requires due diligence to determine the pros and cons of the new site. One of those requirements is the labor pool that is available to fill the jobs the company will be providing. As more call centers continue to bring their operations onshore because of consumer demand, operators can settle in virtually anywhere in the U.S., but municipalities that offer companies incentives have a better chance. The Ohio Tax Credit Authority has made such an offer to Zulily, an online discount retailer, to expand its operation and bring hundreds of jobs to Central Ohio.
Local website Columbus Business First recently highlighted some of the details of the incentive the Ohio Tax Credit Authority approved in order to make the deal possible. The company will receive a 75 percent 12-year income-tax credit, which will give it a saving of close to $6.2 million. The incentives are contingent on the company maintaining a presence in the region for a minimum of 15 years, and meeting the creation of 900 full-time-equivalent jobs in the first three years.
The company is headquartered in Seattle and has distribution centers in Nevada and Obetz, OH, and as of March 2014, it had 1,380 employees as well as 2,000 temporary workers.
Zulily is growing at an impressive rate, which is responsible for the expansions in Nevada and Ohio. Last year the company had sales of $696 million, but this is year is looking to be much better. First quarter sales for 2014 increased to $237.9 million, up 87 percent year-over-year. It expects its fiscal year 2014 outlook to be between $1.15 billion and $1.20 billion, which is higher than its previously stated expectation.
"This year has started off with strong revenue and active customer growth,” said Darrell Cavens, CEO of Zulily. “These results highlight that our team's efforts to deliver a diverse offering of new products every day at a great value resonates with our customers. We remain obsessed about changing the way people shop by giving them an experience they can't find elsewhere."
In addition to the Ohio center, Zulily is also on track to have the fulfillment center in Nevada online in Q3 2014, doubling the size of the current center.
Edited by Rory J. Thompson