Coles, is set to enhance customer experiences in NSW and Canberra with better-stocked shelves and a more tailored product selection, thanks to a new high-tech warehouse in western Sydney.
This state-of-the-art distribution centre, which is as large as 25 rugby fields, and a similar facility in Queensland launched a year ago represent a significant $1 billion investment by Coles. These new automated centres will replace two manual warehouses nearby.
Leah Weckert, CEO of Coles, highlighted the benefits of automation in boosting productivity and efficiency rather than directly addressing whether it would reduce labour costs. “We can handle double the volume in half the space, making our operations much more efficient,” she explained. Shoppers will notice better product availability. Our advanced technology allows us to customise store inventories to better meet local community needs.”
The Kemps Creek facility, covering 187,000 square meters, will serve 229 stores in NSW and the ACT by Christmas, employing 350 staff members and 160 workers from Witron, the logistics provider. Meanwhile, the nearby Smeaton Grange and Eastern Creek warehouses will close in early 2025, resulting in 350 job losses.
Prime Minister Anthony Albanese, who attended the warehouse opening, praised Coles’ investment as a sign of strong confidence in the national economy. “The private sector is the main driver of job creation. This facility showcases how new technology can enhance productivity,” he said.
Penrith Mayor Todd Carney emphasised the positive local impact, noting that the Coles warehouse would create around 500 new jobs and support local farmers and producers. “With the upcoming Western Sydney airport, these facilities are crucial for future job growth,” he added.
In response to cost-of-living pressures, Weckert noted the rising popularity of Coles’ budget home-brand range. “Our brightly coloured yellow packaging signals value to shoppers, helping them easily find affordable alternatives.”
Supermarkets like Coles and Woolworths have faced scrutiny over their profits amidst inflation, prompting increased regulation. The Albanese government has adopted all 11 recommendations from Dr Craig Emerson’s review of the food and grocery code of conduct, making the code mandatory and introducing stricter penalties and anonymous complaint pathways.
Additionally, the ACCC will conduct a year-long inquiry into supermarket pricing practices, with an interim report due by August 31.
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