CASE STUDY
PetSmart
Southwest Distribution Center
Phoenix, Arizona
Phoenix, Arizona
|
|
PROBLEM PETSMART, the fastest growing pet supply company in the country, was growing very rapidly and at the time had only one small distribution center in Texas and one larger center in Ohio. The Ohio facility was part of an acquisition who also had stores in Canada. With the goal of opening more than 200 stores per year, the decision was made to strategically locate their first large warehouse/distribution facility in the southwest. Rose Arck of Brydant was engaged to assist with the Phoenix site search and evaluate the applicability of using a Foreign Trade Zone to facilitate their imported inventory. The facility was to be used for store replenishment of typical inventory, dedicated Live Fish replenishment, and a secured corporate disaster recovery center.
PROCESS After meeting with various merchandising and logistics team members we conducted a site search to accommodate west valley freeway access and would be large enough to allow for current and future expansion needs. PetSmart staff felt 450,000 square feet would meet their current and growth requirements for approximately 5+ years. Simultaneously, we met with the City of Phoenix Foreign Trade Zone administrator as well as strategic department heads within PetSmart to evaluate the opportunities and benefits of operating within a zone. We developed a building design and site configuration that would allow for on-going expansion of the DC as the company continued to add stores and grow through corporate acquisitions. Today, the Southwest DC is nearly 1 million square feet situated on the same site.
SOLUTION A two parcel, 35-acre site located within an industrial park was identified. We negotiated the purchase of the site, as well as performed the entitlement process to abandon a City street and combine the parcels. Rose, along with our strategic partner, Miller & Co, developed and managed the FTZ application process, prepared various operations manuals and the activation of the Zone. Considering the rapid growth of the company, the Zone boundaries included the entire 35-acre site allowing the incremental expansion of the building within the zone. Due to the forethought and strategic planning of not only the building placement on the site and flexible building design, PetSmart has been able to expand in-place and efficiently operate at this facility for many years.
Additional services to complete the project included:
PROCESS After meeting with various merchandising and logistics team members we conducted a site search to accommodate west valley freeway access and would be large enough to allow for current and future expansion needs. PetSmart staff felt 450,000 square feet would meet their current and growth requirements for approximately 5+ years. Simultaneously, we met with the City of Phoenix Foreign Trade Zone administrator as well as strategic department heads within PetSmart to evaluate the opportunities and benefits of operating within a zone. We developed a building design and site configuration that would allow for on-going expansion of the DC as the company continued to add stores and grow through corporate acquisitions. Today, the Southwest DC is nearly 1 million square feet situated on the same site.
SOLUTION A two parcel, 35-acre site located within an industrial park was identified. We negotiated the purchase of the site, as well as performed the entitlement process to abandon a City street and combine the parcels. Rose, along with our strategic partner, Miller & Co, developed and managed the FTZ application process, prepared various operations manuals and the activation of the Zone. Considering the rapid growth of the company, the Zone boundaries included the entire 35-acre site allowing the incremental expansion of the building within the zone. Due to the forethought and strategic planning of not only the building placement on the site and flexible building design, PetSmart has been able to expand in-place and efficiently operate at this facility for many years.
Additional services to complete the project included:
- Coordination of furniture acquisition for offices, lobby, warehouse floor stations, and lunch/break room.
- Meetings w/City of Phoenix Zone Manager – Granting Authority.
- Interviews with Corporate Merchandising, Operations and Logistics Departments to identify benefits of FTZ designation.
- Obtained approval for property tax reduction from various taxing entities.
- Preparation of application drafts and monitoring of application process.
- Preparation of Financing Marketing Package for the sale/leaseback of the building.
"Rose exceeded our expectations. I was impressed with the expedient way goals were identified, site purchased, design completed, and permits in hand and the construction underway in less than six months. Rose managed to even expedite our Foreign Trade Zone application and site designation."
- Chuck Hall, Former Vice President – Real Estate PetSmart
|
|