Upscale department store retailer Saks Inc. has opened a new distribution center earmarked only for pick, pack and ship orders for its e-commerce channel.

The new facility for Saks, No. 38 in the 2012 Internet Retailer Top 500, opened Friday in LaVergne, TN, and will be jointly owned by Saks and DCT Industrial Trust, a real estate development and management company.

The new facility will occupy about 564,000 square feet, employ 250 full-time fulfillment workers and feature a mobile, robotic fulfillment system from Kiva Systems, now a part of Amazon.com.

Saks chose the central Tennessee location near Nashville for its e-commerce distribution center because of its proximity to major cities and transportation hubs, among other factors, Saks says. “Middle Tennessee was selected for its central location, attractive real estate and operating costs, and very capable workforce,” says Saks CEO Steve Sadove.

Saks currently operates leased distribution centers in Aberdeen, MD, totaling approximately 471,000 square feet, and a 120,000-square-foot facility in Ontario, CA. The company will continue to operate those two facilities.