During the peak sales period last year, Coles Group relied on its recently implemented automated distribution hubs to handle a substantial increase in sales.
The supermarket chain runs two hubs that are enabled by Witron supply chain automation technology and has allocated $880 million for constructing a third facility.
For the six months ending on December 31, 2024, Coles disclosed a $120 million surge in sales, primarily fueled by robust performances over Christmas and Black Friday, as well as a labor strike at competitor Woolworths.
In reference to how Coles coped with the spike in demand, Matt Swindells, the company’s Chief Operating and Sustainability Officer, attributed the success to the new hubs and “the flexibility of [its] network.”
“The implementation of automation has been methodical and successful as we transitioned both [the Queensland hub] and [the NSW hub]. The Witron system…was able to handle the additional volume required for Victoria seamlessly. The scalability of this automation and its capacity to accommodate a substantial increase in volume were truly remarkable.”
The initial hub was launched in Queensland in April 2023, followed by the inauguration of the NSW facility in August this year.
The investment in the third automated distribution hub in Victoria contributed to a 3% decline in net profit to $576 million for the half-year closing on December 31, 2024.
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