Coles Group has announced plans to boost its efficiency through the development of two new automated ambient distribution centres.
The two new centres will be located in Brisbane and Sydney and will cost a combined $950 million over six years.
Coles says it aims to boost product availability for customers and cost efficiencies through the two projects.
German automation company Witron will supply the automation systems, and Coles has also entered into 20 year lease agreements with Goodman Group and Brickworks Ltd for the development of the distribution centres.
“With the signing of these important contracts, Coles is one step closer to implementing a key element of its supply chain modernisation strategy,” Coles CEO Steven Cain said.
“This will provide a safer working environment for our team members, lower supply chain costs, enhance our overall business competitiveness and make life easier for our customers by having the right offer in the right location.”
The closure of existing distribution centres over a five year period will result in $146 million in costs related to lease exits and redundancies, the supermarket giant says, which will be reflected as a pre-tax provision in its 2019 interim result.
