Myer has secured a ten-year lease on a new 40,000 square metre national distribution centre in Victoria that promises “significant efficiencies” for online fulfilment.
The company revealed plans for the facility on Friday, with customer benefits and efficiencies expected to flow from the “implementation of several automation solutions”.
It said the facility represents the next phase in its ‘factory to customer’ supply chain initiative and follows improvement to online operations last year in response to the pandemic.
Myer CEO John King said the warehouse would “deliver an enhanced experience in store and online for our customers but also significant efficiencies for the business”.
“Having a centralised fulfilment centre for stores replaces our historical push model…whilst also producing significant efficiencies in our online fulfilment operations,” he said.
The “state-of-the art” facility, currently being built at Dexus’s Horizon 3023 industrial estate in the Melbourne suburb of Ravenhall, is expected to hold over 100,000 SKUs.
Up to 70 percent of online fulfilment will be performed by the facility, which Myer said would result in improved service levels for customers and reduced cost per order.
Stores are still expected to be “key for click and collect options as well as ‘last mile’ deliveries in some areas”, the retailer added.
The facility will also provide “centralised fulfilment for stores ensuring stock is prioritised for stores with the highest sell through, which is anticipated to maximise sales and reduce markdowns”.
Myer will also allow brand partners to access the NDC, allowing them to take advantages of similar efficiencies.
Construction of the warehouse is currently underway, with Myer expected to begin using the facility from August 2022.
