Rack Room Shoes Invests $16.03 Million To Expand Its Charlotte, N.C. Headquarters, Relocating Subsidiary
The company is a subsidiary of the Deichmann Group, a German-based privately-held footwear retailer. Rack Room Shoes and its subsidiary, Off Broadway Shoes Warehouse, employs over 6,500 associates in more than 450 stores in 34 states, with 49 of those stores located in North Carolina. Off Broadway Shoes Warehouse has an additional five locations in North Carolina.
Rack Room Shoes plans to expand its current Charlotte facility to locate its headquarters and the Off Broadway headquarters on one campus. Off Broadway’s headquarters is currently located in Georgia. This expansion will enable the company to grow both store counts and sales, and specifically to undertake growth of the Off Broadway brand at an accelerated pace over the next five years.
“Rack Room Shoes and Off Broadway Shoe Warehouse are two strong retail brands with a vision to grow exponentially with their respective consumer segments in the fashion footwear market. We are thrilled to expand our experience and leadership team within the state of North Carolina,” said Mark Lardie, President and CEO of Rack Room Shoes and Off Broadway Shoe Warehouse. “Additionally, our Charlotte headquarters gives us tremendous opportunity to recruit talented fashion industry executives, buyers and marketing professionals, while offering them a home in a city with a vibrant entertainment community and unrivaled quality of life.”
The project was made possible in part by an award from the state Job Development Investment Grant program. Receipt of the award is based on proof of job creation and other performance requirements, Gov. Pat McCrory’s Office said.
“The North Carolina Department of Commerce is committed to working with existing companies to grow jobs,” said Sharon Decker, North Carolina Secretary of Commerce. “We congratulate Rack Room Shoes for their success and for investing in North Carolina once again.”
The state Economic Investment Committee voted to award a Job Development Investment Grant to Rack Room Shoes. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant.
Under the terms of the company’s JDIG award, Rack Room Shoes is eligible to receive up to seven annual grants equal to 40 percent of the state personal income tax withholdings from the eligible new jobs created since the date of the initial award. Receipt of each annual grant is based on state-certified proof that the company has fulfilled incremental job creation and capital investment requirements. Over seven years, the JDIG award could yield aggregate benefits to Rack Room Shoes of up to $663,000.
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