Myer has secured a ten-year lease of a new distribution centre to bolster online growth. The Ravenswood DC is 40,000 sqm and will assist orders both in-store and online.
This is the next step in its Customer First strategy, following its e-commerce enhancements undertaken in 2020 and changes to international freight arrangements earlier in 2021.
The DC will have the ability to hold more than 100,000 SKUs, with automated solutions to speed up deliveries. Myer anticipates that up to 70 percent of the fulfilment will be completed by this DC, which aims to reduce order costs, improve levels of service for customers and operational efficiencies.
“Today’s 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,” said John King, the CEO of Myer. “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.”
Early in July, Premier Investments Chairman, Solomon Lew, shared scathing comments about the retailer’s ‘disastrous’ performance and the time taken to appoint a new Chairperson for the business. Premier Investments had recently acquired a further 41.1 million shares at $0.40, giving the company an effective stake of 15.77 percent.
“We remain bitterly disappointed by Myer’s performance which continues to be disastrous for Myer’s many shareholders, employees, suppliers and customers,” said Lew. “t’s now been more than eight months since then Myer Chairman, Garry Hounsell abruptly resigned on the morning of Myer’s 2020 AGM sighting lack of key shareholder support for his re-election.” Myer’s shares have increased by 26.76 percent over July, reaching $0.50 per share on the 16th of July. It has since dipped down to $0.46 per share, where it has remained somewhat consistent for the last week.
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