Coles to overhaul distribution network
Inside Retail reported that supermarket giant Coles plans to make a $146 million pre-tax provision in its 2019 interim results as part of an overhaul of its distribution network. The supermarket chain has signed contracts with Witron Australia to develop two new automated ambient distribution centres to replace three existing dry goods facilities across Queensland and New South Wales. The provision is related to the costs of existing leases as well as redundancies from the closure of existing distribution centres over the next five years. The two centres, one of which will be based in Redbank, southwest Brisbane, and the other in Kemps Creek, western Sydney, will cost Coles a total of $950 million over six years.