Kmart Group has announced plans to open a new 100,000sqm omnichannel fulfilment centre at ESR’s Moorebank Intermodal Precinct, NSW. The facility will support the continued growth of both Kmart and Target by expanding distribution capacity and enhancing both customer and team member experiences.
Scheduled to be operational by the end of 2027, the facility will transform Kmart Group’s supply chain in NSW through a modern omnichannel fulfilment capability. The facility will enable increased capacity to support future growth, better availability for customers, better safety outcomes for team members and provide faster delivery times both to stores and customers.
Kmart and Target CEO John Gualtieri says the investment in the new Moorebank Omnichannel Fulfilment Centre will be an important part of the business’ long-term strategy to modernise its supply chain and simplify store operations.
“This commitment is an exciting milestone and represents a significant investment in our future supply chain. By modernising our fulfilment capabilities, we’re increasing speed, efficiency and flexibility across our network. Ultimately, this is about delivering even more value to our customers, which is central to who we are.”
Mr Gualtieri also highlighted the continued importance of a strong store network matched by online in the Group’s growth strategy, something he also acknowledged was a key differentiating strength that the Group would continue to build on.
“With nearly 450 stores across Australia and New Zealand, our store network for Kmart and Target remains a core part of our customer offering. This new facility is key to delivering a seamless omnichannel experience, ensuring customers receive the products they need, when and how they want them. Whether shopping online or in-store, our goal is to provide great quality products at the lowest prices, and this facility will help us do that more efficiently than ever.”
The entire Moorebank Intermodal Precinct, comprising 12 tenants including Kmart, is projected to deliver $11 billion in economic benefits over the 30 years following completion, including $3.6 billion to the economy of Southwest Sydney.[1] The Precinct is expected to create more than 1300 construction jobs during construction phase, and once fully operational, it is projected to support approximately 6,800 direct and indirect jobs[2], including over 500 at Kmart Group – which will primarily consist of existing team members transferring to this new facility.
The new Omnichannel Fulfilment Centre has been designed targeting a minimum 5 Star Green Star v1.3 rating and incorporating smart lighting controls, water reuse systems as well as a thermally responsive colour palette.
Located within the Moorebank Intermodal Precinct, reported as Australia’s largest intermodal logistics hub, Kmart Group will further advance its sustainability objectives through rail-based container transport that significantly reduces road freight emissions, while contributing to and benefiting from the Precinct’s broader environmental initiatives, including a 100-hectare protected conservation area.
The Hon. Prue Car, Deputy Premier and Minister for Western Sydney, joined Kmart Group at the official announcement.
“The Precinct is a major boost for the local community, creating hundreds of jobs and contributing to the long-term economic growth of south-west Sydney. This will create opportunities for local workers, and I am pleased this investment will mean local families benefit from long-term employment close to home.”
Phil Pearce, ESR Australia & New Zealand CEO, and Deputy CEO ESR Group said: “We’re delighted to welcome Kmart Group to Moorebank Intermodal Precinct, a nationally significant logistics hub purpose-built to power Australia’s future supply chains. Kmart’s new facility reflects the strength of Western Sydney as a destination for investment and job creation, and it underscores the role Moorebank will play in delivering long-term economic, environmental and social benefits to the region.”
James Baulderstone, National Intermodal CEO said: “The Moorebank Precinct was created to enable companies like Kmart to invest alongside the Australian Government and play an essential role in modernising our nation’s critical supply chain by providing essential products to homes and families securely and affordably. Kmart Group’s decision to locate such an important part of its distribution network to Moorebank is a further endorsement of this long-term vision and we look forward to working together.”
The new Moorebank facility marks a significant milestone in Kmart Group’s ongoing investment in Australia’s retail and logistics future, strengthening the Group’s ability to serve millions of customers across the country every week.
[1] Cormann, M., & Chester, D. (2017, April 6). Construction begins on Moorebank Logistics Park [Media release]. Australian Government Department of Finance. https://ministers.finance.gov.au/financeminister/media-release/2017/04/06/construction-begins-moorebank-logistics-park
[2] Australian Government Department of Infrastructure, Transport, Regional Development and Communications. (2021, April 15). Construction kicks off on Moorebank Interstate Terminal [Media release]. https://minister.infrastructure.gov.au/c-king/media-release/construction-kicks-moorebank-interstate-terminal.
