Myer has announced that it has secured a 10-year lease on a new 40,000 square metre fulfilment facility in Victoria.
The new national distribution centre (NDC) will serve as a fulfilment facility for both its bricks-and-mortar stores and its eCommerce channel.
The new build, which will be located at the Ravenhall industrial estate, will hold over 100,000 SKUs and will utilise several automation solutions to streamline operations.
Commenting on the NDC, Myer CEO John King said that the new centre will give the department store a raft of benefits.
"This announcement is another important step in our Customer First Plan.
"It will deliver an enhanced experience in store and online for our customers but also significant efficiencies for the business through significant benefits from factory to customer.
"Having a centralised fulfilment centre for stores replaces our historical push model, and will result in improved inventory management, reduced markdowns and maximised sell-through whilst also producing significant efficiencies in our online fulfilment operations," he said.
The new NDC is expected to provide centralised fulfilment for stores, ensuring stock is prioritised for stores with the highest sell through, which is anticipated to maximise sales and reduce markdowns.
For the online business, Myer anticipates that up to 70% of fulfilment will be performed by the NDC, ensuring improved levels of service for customers, operational efficiencies and reduced cost per order.
The stores will remain a key part of the click and collect service as well as ‘last mile’ deliveries in some areas.
The NDC builds on Myer's other fulfilment investments made in recent months including improvements to its online operations and changes to international freight arrangements.
Construction of the site is currently underway and Myer is expected to begin using the NDC in a phased approach from August 2022.
The department store will offer brand partners access to the NDC, allowing them to make use of the site and services.