Outdoor clothing and equipment retailer Kathmandu has confirmed construction of a new national distribution centre in Christchurch to support the brand's expansion strategy.
The new centre, based at Portlink Industrial Park in Woolston, will act as a 5000sqm warehouse superseding the company's existing distribution facility. Kathmandu's current national distribution centre has been operating since 2000, when the company had only nine stores, but it has now reached its full capacity and some stock has had to be stored offsite.
The Portlink site, to be operational by July 2012, will supply the company's existing 37 New Zealand stores and meet the demands of the company's future growth.
The retailer plans to open three more stores in New Zealand during the next few months – in Whakatane, Ashburton and Paraparaumu, bringing its New Zealand store total to 40.
Chief executive Peter Halkett said the increased warehouse space would support this store expansion programme, as well as the enlargement of the company's product range.
"As a major player in outdoor gear for travel and adventure in Australasia, Kathmandu currently has its support offices and national distribution centres in Christchurch and Melbourne. But with more than 100 stores throughout Australia and New Zealand, the company had been considering its future requirements,” he said.
Halkett said the decision to build the warehouse in Christchurch despite the recent earthquake was based on the Kathmandu boards belief in the future of the beleaguered city, and its commitment to the company's heritage in Christchurch where it has been trading over 20 years.
“After examining a number of options, the board has decided to build a 5000sqm facility at Woolston in Christchurch, near our head office. We did consider the option of an alternative warehousing facility in Auckland, but the board decided that Christchurch was a superior proposition,” he said.
Kathmandu has entered into a long-term lease agreement with expansion rights at the 30-hectare industrial park and has recruited Arcus Developments Ltd to begin construction of the Portlink project by the end of this year, for completion in May 2012.