Columbia Sportswear 2004 Annual Report Download - page 13

North America
Approximately 38.5% of the retailers that offer our products worldwide are located in the United States and
Canada. Sales in these two countries accounted for 71.6% of our net sales for 2004. We work with over 30
independent sales agencies that in turn work with retail accounts varying in size from single specialty store
operations to large chains made up of many stores in several locations.
Mountain Hardwear products are sold through 10 independent sales agencies that work with a variety of
retail accounts that are primarily focused on smaller specialty outdoor and ski shops across the United States.
Mountain Hardwear products are also sold through select specialty chain stores and catalog companies that
feature high end outdoor equipment and apparel. In Canada, Mountain Hardwear products are sold through an
independent distributor.
Our flagship store in Portland, Oregon is designed to create a distinctive “Columbia” environment,
reinforcing the active and outdoor image of the Columbia brand. In addition, this store provides us with the
ability to test new marketing and merchandising techniques. We also operate eight outlet stores in various
locations throughout North America. These outlet stores are designed to sell excess and distressed inventory
without adversely affecting our retail accounts.
We inspect, sort, pack and ship substantially all of our products sold to United States retailers from our
Rivergate Distribution Center, which consists of approximately 850,000 square feet located in Portland, Oregon.
In 2004, this distribution center served as the U.S. distribution center for all Columbia and Sorel-branded
products. In January 2005, we completed construction of an additional distribution center in Robards, Kentucky.
This distribution center consists of approximately 520,000 square feet and began operating in January 2005. This
facility will improve proximity to major footwear customers and, we believe, will help facilitate reorders.
Although this facility was constructed with a specific focus on footwear, it was designed and engineered to
support other product lines as well.
Mountain Hardwear products sold to United States retailers are inspected, sorted, packed and shipped from
the Richmond, California Distribution Center, which consists of approximately 58,000 square feet. Raw materials
for domestic production of Mountain Hardwear products are also housed in this facility.
We handle Canadian distribution from a leased warehouse in Strathroy, Ontario.
In some instances, we arrange to have products shipped directly from our independent manufacturers to
customer-designated facilities.
Europe
We have European sales offices in France, Germany, Italy and the United Kingdom, with our European
headquarters office located in Zurich, Switzerland. We sell our products directly to approximately 5,400 retailers
in Western European countries. Our marketing and sales efforts, particularly in France, Germany, Spain, Italy
and the United Kingdom, resulted in net direct sales of our products in Europe of $170.3 million in 2004.
We distribute our apparel and footwear products in direct markets in Europe through our distribution center
in Cambrai, France, which we own and operate. The facility in Cambrai consists of approximately 269,000
square feet and began operating in January 2003.
Other International
We have distributed our products through independent distributors in Japan since the mid-1970s. In the fall
of 1998, we began distributing our products directly in Japan, predominantly through retailers. We now sell our
products primarily through a combination of retailers and wholesalers. We distribute our products in Japan
through a warehouse, owned and operated by an independent logistics company located near Tokyo. In 1997 we
began selling our products directly in South Korea, principally through retailers. Korean distribution is conducted
from a leased warehouse in Seoul.
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