Business Don't miss out on the headlines from Business. Followed categories will be added to My News. Coles is ramping up investment in its supply chain that stretches from the farmgate to the consumer’s front door, revealing it will spend $880m on another technology savvy distribution centre to add to the already $1.
4bn it has spent on its food and grocery supply chain. Unveiling its first quarter sales update on Thursday, which showed supermarket same-store sales up 2.4 per cent to $9.
507bn, Coles said it would pour more money into another ambient automated distribution centre (ADC) in Truganina, Victoria, in partnership with Witron which has already built two other distribution centres for the supermarket. The robotic centre will handle packaged goods, such as canned food and groceries like toilet paper, and add capacity as well as further speed to the supermarket’s supply chain. Coles’s first quarter sales were behind that of arch rival Woolworths , which on Wednesday issued its first quarter sales which showed comparable sales up 3.
8 per cent, however unlike Woolworths the smaller supermarket group did not issue a profit warning due to the tougher economic climate and price-conscious shoppers. Although a more nervous and frugal shopper was also a factor for Coles. “Cost of living remains a challenge for many of our customers, and we are focused on helping them find value in our stores through weekly specials, value campaigns, Flybuys and exclusive brands,” Cole.