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Tag: woolworth

  • Woolworths Fuels Retail Innovation with $1.3B Automated Distribution Hub in Western Sydney

    Woolworths Fuels Retail Innovation with $1.3B Automated Distribution Hub in Western Sydney

    Woolworths has inaugurated a regional distribution center in Western Sydney, advancing a $1.3 billion commitment to automated supply-chain infrastructure. The facility is strategically located adjacent to the supermarket’s national distribution center, and the two centers combined are projected to handle over 5 million cartons each week, servicing a product range of 20,000 items.

    Streamlining Logistics

    The new distribution center is ideally situated with direct connections to the Port Botany, interstate rail, and the M5 and M7 motorways in Sydney. This strategic positioning is aimed at optimizing freight flows and reducing the reliance on road transport.

    Improving Product Availability

    Woolworths stated that the amalgamation of these facilities will enhance product availability on the shelves and expedite the introduction of new products through more efficient replenishment. The centers, which spread across 75,000 square meters, will utilize automation to assemble aisle-ready pallets that align with the unique layouts of individual stores. This will assist teams in restocking shelves more rapidly.

    Strengthening Operations

    Amanda Bardwell, the CEO of Woolworths Group, expressed that the investment not only reinforces the company’s service and operations but also holds great significance for customers, the team, and the company’s future capability.

    She explained, “This investment is about far more than infrastructure. It is vital to our customers, our team, and our future capability.” She further added that the investment results in a more resilient supply chain. Furthermore, the automation significantly reduces heavy manual handling, making a notable difference to the team members on a daily basis.

    Questions & Answers

    How much investment has Woolworths made in automated supply-chain infrastructure?
    Woolworths has invested $1.3 billion in automated supply-chain infrastructure.

    What is the expected weekly carton handling capacity of the new regional distribution center and the national distribution center?
    The two centers combined are projected to handle over 5 million cartons each week.

    How will the new distribution center in Western Sydney benefit Woolworths operationally?
    The new center will boost product availability on shelves, expedite the introduction of new products, and assist teams in restocking shelves more quickly due to the use of automation. Furthermore, it will strengthen the company’s supply chain resilience and reduce heavy manual handling, improving working conditions for team members.

  • Big W to shut down 30 stores over 3 years

    Big W to shut down 30 stores over 3 years

    Department store chain Big W will close approximately 30 stores and two distribution centres over the next three years in an effort to create a more profitable and sustainable store network in a changing retail environment.

    This is less than the 60 store closures that Macquarie Wealth Management predicted in a report last month, before Big W’s parent company Woolworths Group had completed its internal review of the discount department store business.

    The decision, which will see the number of Big W stores shrink by about 16 per cent, will cost the business $270 million in lease and store exit costs. This will impact Woolworths Group’s FY19 full-year result, alongside a $100 million cash impairment identified in the review.

    “While the recovery in trading for Big W is encouraging, and there remains further opportunity for improvement, the speed of conversion to earnings improvement is taking longer than planned,” Woolworths Group chief executive Brad Banducci said in a note to investors.

    “This decision will lead to a more robust and sustainable store and DC network that better reflects the rapidly changing retail environment. It will accelerate our turnaround plan through a more profitable store network, simplifying current business processes, improving stockflow and lowering inventory.”

    In its report last month, Macquarie noted that half of Big W’s stores are located in challenging centres, many of which are regional, and that these locations are unlikely to give the brand the sales it needs to return to profitability.

    Woolworths expects its department store business to record a loss before interest and tax for FY19 of $80 to $100 million, slightly below the $110 million loss felt in FY18.