Kering SA intends to build new logistics warehouses in Europe and the U.S., the company confirmed in an email to S&P Global Market Intelligence.
The development was first reported by fashion industry journal Women's Wear Daily on May 23.
The French luxury group said the expansion plans are part of its decision to introduce a new operating model that involves a major reorganization and simplification of its existing logistics network. This will require the company to make new investments in the U.S., Asia and Italy.
The company said it has decided to move its central warehouse in the U.S. to a new location in New Jersey, where it is building a larger facility. In Europe, Kering said most of its activities in Switzerland will be transferred to a new logistics hub in northern Italy that will also have a larger storage capacity, in line with growing business volumes. It also said it plans to address the increasing demand for connectivity with key transportation hubs.
However, Kering said that it will continue to support its operations in Ticino, Switzerland considering "the quality of the assets and expertise" that it has been building in the facility.
Kering expects the expansion project to be completed over a three-year period, from 2020 to 2022. It also noted that its plans are grounded on business and operational reasons and are not dictated by tax considerations.
The company recently settled a tax dispute related to its fashion brand Gucci with the Italian Revenue Agency for €1.25 billion.