Myer is opening a new 40,000-square-metre national distribution centre in Victoria as it looks to bolster its factory-to-customer supply chain and online capabilities.

The site at Ravenhall is under a 10-year lease and will incorporate a number of automation solutions. It is set to process more than 100,000 SKUs for both in-store and online business, with the company anticipating it will handle up to 70 per cent of online fulfilment. The centre will also prioritise stock for stores with highest sell-through, reducing markdowns and boosting sales.

Myer CEO John King. (Source: Inspired Leaders)

According to John King, CEO of Myer, the new site is an important step in the retailer’s “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 distribution centre will open in phases from August 2022. The retailer struggled earlier in the year, with sales and share prices tumbling and plans to reduce bricks-and-mortar stores; stocks have risen in recent weeks, however, with billionaire Solomon Lew buying up millions of shares amid a tilt at the Myer board.