- Myer Holdings (MYR) secures a 10-year lease on a new national distribution centre based in Victoria
- The 40,000-square-metre facility represents the next phase in the retail giant's factory-to-customer initiative
- It also follows improvements to the company's online operations in 2020, as well as changes to international freight arrangements
- Shares closed 2.15 per cent lower at 45.5 cents on July 23
Myer Holdings (MYR) has secured a 10-year lease on a new national distribution centre based in Victoria.
The 40,000-square-metre facility represents the next phase in the retail giant's factory-to-customer initiative, which underpins its wider "Myer Customer First" strategy.
The step follows enhancements to the company's online operations made in 2020, as well as changes to international freight arrangements undertaken earlier this year.
Myer anticipates the state-of-the-art facility will generate widespread benefits and efficiencies for its customers instore and online through several automation solutions.
These include the centralised fulfilment of stock, which will prioritise stores with the highest sell-through — a move anticipated to maximise sales and reduce markdowns.
Myer expects the national distribution centre (NDC) will perform up to 70 per cent of online fulfilment, ensuring improved levels of service for customers, as well as operational efficiencies and a reduced cost per order.
Further, the company is set to offer brand partners access to the new facility, allowing them to take advantage of its various benefits.
Commenting on the news, Myer CEO John King reiterated the lease was an important step in the company's Customer First Plan.
"[The NDC] 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," he said.
"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."
Construction of the site is underway with phased use of the facility planned from August, 2022.
Shares closed 2.1 per cent lower at 45.5 cents on July 23.