Quiksilver Moves Footwear Facility Inland
Huntington Beach, Calif.–based Quiksilver Inc. will be moving some of its warehouse facilities inland later this year to a spacious new state-of-the-art facility that has the added bonus of cheaper rent.
The surf giant pulled in $1.78 billion in sales during the 2005 fiscal year, which was marked by the acquisition of the Rossignol Group, Cleveland Golf and Surfection, an Australian retail chain.
The company’s new 683,000-square-foot warehouse is in Mira Loma, Calif., roughly 50 miles from Quiksilver’s corporate offices. The facility, which the company hopes to take possession of in February, will house the company’s footwear distribution operations—including those of the DC Shoes, Roxy and Quiksilver divisions. DC’s apparel distribution, which currently shares a 150,000-square-foot facility in Vista, Calif., with DC Shoes, will also be moved to the Mira Loma facility.
“We were running out of space,” said Greg Ziegler, Quiksilver’s chief operating officer. “We researched our options, and the Mira Loma facility made the most sense.” When the company moves in this summer, only 50 to 60 percent of the facility will be occupied, giving Quiksilver much-needed wiggle room.
And the savings were a big incentive. The 10-year lease Quiksilver signed for the property will result in substantial savings, Ziegler said, declining to give the terms of the agreement.
If the arrangement works out as planned, the company will have first dibs on a new 400,000-square-foot facility set to be built on the adjacent lot.
But Ziegler says that although moving warehouse facilities inland makes financial sense, Quiksilver’s 250,000-square-foot headquarters will never leave the beach. “Our corporate offices and all of our creative staging are here to stay,” he said.
—Erin Barajas
