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Consolidation to strengthen adidas operational efficiencies

07 Apr '07
2 min read

The adidas Group announces it will consolidate the adidas brand's apparel distribution center in Hebron, Ky., its footwear distribution center in Spartanburg, S.C., and the Reebok brand's apparel distribution center in Memphis, Tenn., and its footwear distribution centers in Stoughton and Norwood, Mass., into new facilities in Spartanburg, S.C., by fall 2009.

The decision to develop an integrated distribution network will strengthen the Group's competitive position, as well as contribute to the synergies created by the integration of adidas and Reebok.

The facilities in Memphis and Hebron are expected to remain in operation until the fall of 2008. The facilities in Stoughton, Norwood and Spartanburg are expected to remain in operation until the fall of 2009.

U.S. distribution centers that are not affected by the consolidation include: the company's Sports Licensed Division facilities in Mattapoisett, Mass., Indianapolis Ind, and Cedar Rapids, Iowa; the Rockport Company facility in Lancaster, Mass., and the Taylor Made-adidas Golf facility in Carlsbad, Calif.

“Maintaining separate distribution systems for adidas and Reebok apparel and footwear in different parts of the United States is not an efficient way of effectively managing this critical aspect of our business,” said Lars Soerensen, Senior Vice President, Global Logistics for the adidas Group.

The consolidation will affect approximately 375 adidas and Reebok brand employees at apparel distribution facilities in Memphis and Hebron and at footwear distribution facilities in Stoughton and Norwood. adidas employees currently in Spartanburg will move to the new site a few miles away.

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