Nike plans to build footwear distribution center in Memphis

03 Mar '07

3 min read

Nike Inc announced that it has reached an agreement to acquire a 125-acre land parcel in Memphis, Tennessee, known locally as Northridge, where it plans to build a new 1 million square foot footwear distribution center. The land purchase agreement was signed March 1, 2007, by Nike and Memphis-based Belz Enterprises.

In a related demonstration of confidence for the project, the Industrial Development Board (IDB) for Memphis and Shelby County also formally granted Nike's application for making Northridge eligible for Payments in Lieu of Taxes (PILOT) leases based upon the anticipated job creation and capital investment.

The new facility, located in the Frayser area of Memphis, had already been designated as an "enterprise zone" targeted for a large employer to provide economic stimulus to the surrounding community.

The new facility is expected to house employees from both Nike's existing Winchester Road facility in Memphis, and employees relocating from a second distribution center based in Wilsonville, Oregon.

"Nike is pleased to increase its investment in the Memphis community with this state-of-the-art facility. This distribution center will be great for our employees, retail customers and consumers while expediting our time to market," said Nick Athanasakos, Vice President, Nike Supply Chain.

A comprehensive business analysis projected several benefits to Nike and Nike retailer customers including: cost efficiencies totaling more than $200 million, reduced shipping times and increased service capabilities.

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