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Japan's Nitori spends $1.9bn to build own logistics chain

Furniture retailer to streamline inventory management and shipments

Nitori is one of Japan's best-known furniture chains, offering a wide range of products at affordable price points. (Photo by Satoshi Hishida)

TOKYO -- Japanese furniture retailer Nitori Holdings will invest up to 200 billion yen ($1.92 billion) over the next five years to build a fully in-house logistics chain that is managed online, looking to cut shipping times to customers.

Nitori operates 12 logistics hubs nationwide, eight of which are rented from outside partners like GLP Japan. The company plans to build its own facilities on a similar scale so it can phase out the rented hubs -- which together take up roughly 500,000 sq. meters -- in order to reduce rent and commissions.

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