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Kathmandu Expands NZ Distribution Centre

12th May 2014

Kathmandu Expands NZ Distribution Centre

Kathmandu is expanding its National Distribution Centre in Christchurch to support the Company’s growth plans including increasing New Zealand store and online sales, and its focus on international sales opportunities. The existing 5,000m2 Distribution Centre at the Portlink development in Heathcote is being increased to 7800m2 and is expected to be commissioned in August 2014.

The Distribution Centre, which services Kathmandu’s network of 46 stores in New Zealand and our domestic and more recently international online customers, will continue to operate during the expansion project.

Kathmandu’s General Manager, Supply Chain, Caleb Nicolson, said the investment in the DC was a significant project for the company.

“We are optimistic about our business strategy, in particular our growing online sales, which now account for 4.7 per cent of our business, as well as the strength of our business in New Zealand.”

“We expanded our international delivery offer in March this year and are now shipping to over 40 countries. Our plan is to ship an increasing number of international orders from the Christchurch Distribution Centre,” Mr Nicolson said.

The expansion of the Distribution Centre will create employment opportunities within the Christchurch area as the amount of product shipped increases.

Mr Nicolson said the investment also demonstrated the company’s long term commitment to Christchurch. Kathmandu is in the top 50 listed companies on the NZX and is the only retailer in the NZX50 headquartered in the South Island.

Mr Nicolson said the expansion of the Distribution Centre extended Kathmandu’s partnership with Arcus, the owner of the Portlink Business Park.

Arcus delivered the building, tailor made for Kathmandu’s needs, and the original lease agreement provided potential to expand,” Mr Nicolson said.

Dexion, which supplied the racking system for the Distribution Centre, has been contracted to complete the extension process.

“Maintaining our high customer service levels to both our retail and online customers is critical during this period. I acknowledge our Distribution Centre team and key partners Arcus and Dexion’s support in delivering this project while we remain operational.” Mr Nicolson said.

ENDS

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