Kathmandu says it makes economic sense to base its new national distribution centre in Christchurch.
The outdoor equipment and clothing retailer has committed to building its new distribution centre in the suburb of Woolston, in a vote of confidence for the earthquake damaged city.
The 5000 square metre facility at the Portlink Industrial Park will be near the retailer's head office and its current distribution centre, which is running at capacity.
Kathmandu chief financial officer Mark Todd says the company considered establishing a warehouse in Auckland, but felt Christchurch was the best option, as it was more cost-effective and the company's team is already in the city.
Mr Todd says occupancy costs will rise when the company takes over the leased premises, but it is needed to service a growing number of stores.
He says the retailer expects to open at least three more stores before the distribution centre is up and running in the middle of next year.