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Cotton On expanding local DC to strengthen operations

Cotton On Group has said it is expanding its operations in Australia through further investment in its distribution facility in Avalon, Victoria.

The 35,000sqm purpose-built DC was first launched in 2018 and serves as the base of operations for Cotton On’s online business and ships products to stores.

“The Cotton On Group is driven by an obsession with giving our customers the best possible experience,” said CFO Michael Hardwick.

“This facility was designed with a growth footprint in mind, and we are delighted that now is the time to executive on that plan.”

The expansion will bring the total size of the DC to 45,000 sqm and will create up to an additional 100 jobs.

Cotton On’s announcement is the latest in a string of businesses which are upping investment in their DCs following the rapid rise of online shopping caused by the Covid-19 pandemic.

In November 2020, sporting goods retailer Decathlon said it will automate its Sydney warehouse in an effort to double productivity, something Catch Group also announced in September.

The growth in online isn’t just being seen in discretionary retail, however, with grocery giants Woolworths and Coles also investing in automation in order to fulfil the need for more online grocery.

Editor’s note: This story originally said Cotton On’s Avalon DC was in Sydney, when it is actually in Melbourne. The story has been updated to reflect this.

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