Myer picks up new national distribution centre in online, efficiency push

Department store Myer has signed a ten-year lease on a new 40,000 sqm warehouse which will serve as the 120-year-old business’ new national distribution centre.

The warehouse, situated in Ravenhall, Victoria, will serve Myer’s stores and online efforts, will hold over 100,000 SKUs, and is key to the next phase of the department store’s ‘Factory to Customer’ initiative – and is another important step in the ongoing ‘Customer First Plan’ according to chief executive John King.

“[This centre] 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,” King 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.”

For online, the new NDC is expected to fulfil up to 70 per cent of online orders – though individual stores will remain important in regards to click-and-collect orders and, in some cases, facilitating last-mile delivery in certain areas.

Construction on the site is currently underway and is expected to become operational from August 2022.

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