Sports apparel giant Nike Inc. has announced it will be expanding its Memphis operations, investing $301 million. The facility being expanded is the company’s Northridge distribution center in Memphis, creating a centralized, multi-product engine for wholesale and retail distribution. The company’s multi-product expansion is slated to go live in 2014, keeping an eye on future growth.
According to The Memphis Business Journal, Nike will be expanding its 1.1 million-square-foot Northridge Industrial Park distribution center by 1.8 million. The future facility will be developed on 70 acres and is expected to cost around $276 million.
According to the same news outlet, Nike will also be revamping its Shelby Drive facility. The $1.3 million-square-foot location will be taking over employees and operations from another Memphis Nike facility—the Winchester Road operation—which will soon end its current lease. The Shelby Drive upgrade is said to have a price tag of $25 million.
Nike TN Inc. will create an estimated 250 new jobs, with annual salaries of $35,000 plus annual benefits worth $7,000. The company will benefit from numerous incentives for keeping and expanding locally. Among them is a 15-year tax freeze that will save Nike TN $57 million, while still generating around $105 million in tax payments.
In other news, Fred’s Super Dollar Store has also expanded its Memphis operations by inaugurating two 16,000-square-foot stores in the Bluff City. According to a report by the Memphis Daily News, the stores are located at 7965 East Shelby Dr. and 6500 Quince Rd. The units feature increased food sections as well as pharmacies.
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Chart courtesy of CBRE Memphis