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Kering begins work on new US operations center

By
Translated by
Robin Driver
Published
today Jul 12, 2019
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Following Kering's announcement at the end of May that it would be relocating the majority of its European logistical activities from Switzerland to Italy (Switzerland having played a central role in the fiscal imbroglio that pitted the company against the Italian tax authorities earlier this year), the luxury group has begun work on its new American distribution center. Currently based in Secaucus, New Jersey, the hub will move to brand new digs a few kilometers down the road in Wayne in 2020.
 

Kering has begun work on its American operations center - Shutterstock


This new transatlantic operations center will serve as the group's largest relay point in the Americas. As well as an 80,000-square-foot office space, the facility will house a 770,000-square-foot distribution center and a 17,500-square-foot repair center. As part of Kering's commitment to sustainability, the new Wayne center will apply for LEED Gold certification in order to ensure the eco-friendliness of the facility. 

Kering closed the first quarter of 2019 with revenues of 3.7 billion euros ($4.2 billion), representing growth of 17.5% when compared to the same period in the previous year. 

In May the group led by François-Henri Pinault agreed to pay 1.25 billion euros ($1.41 billion) to Italian fiscal authorities to cover unpaid taxes and penalties. One of the main targets of the tax evasion case, the company's Swiss subsidiary, Kering Luxury Goods, was notably in charge of managing the group's European logistics operations from Switzerland. 

According to a press release, having moved these Swiss operations to Italy and begun work on its new American logistics center, "the group is ushering in a new operating model, with a substantial reorganization and streamlining of its current logistics footprint, with new investments in the US, Asia, and Italy."

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