Page 9 - Retail World Tob - May 2020

COLES TO BUILD TWO NEW FULFILMENT CENTRES Coles says it has taken another step in its ongoing digital transformation strategy, securing sites in Sydney and Melbourne for two “high-tech” customer fulfilment centres (CFCs) that will enable Coles Online to provide customers with “market-leading” range and service. In March 2019, Coles signed an exclusive services agreement with UK-based Ocado Group to bring “the world’s leading” online grocery platform, automated single-pick fulfilment technology and home delivery solution to Australia. A key element of the Ocado model is the company’s highly automated CFCs, which Coles says will enable it to offer customers greater range and improved product availability while significantly increasing capacity to service online customers. Coles has now signed agreements with Charter Hall Group for long-term leases on two new sites to house the CFCs in the Horsley Drive Business Park at Wetherill Park in Sydney, and the MidWest logistics hub at Truganina in Melbourne. Ocado will be responsible for the installation and ongoing maintenance of automation equipment in the CFCs. Coles says development of the centres will support more than 600 jobs during construction and fitout, while a total of 600 additional ongoing jobs, including skilled technology roles, will be created at the CFCs once they begin operation in FY23. MAY, 2020 RETAIL WORLD 7 NEWS