Coles credits supply chain tech for handling seasonal surge

Coles Group has leaned on its new automated distribution centres to manage a significant sales uptick during last year’s seasonal rushes. 

The grocery retailer operates two centres powered by Witron supply chain automation technology and has committed $880 million to develop a third.

For the half-year ending December 31, 2024, Coles reported a $120 million increase in sales, driven by strong performances during Christmas and Black Friday, as well as a worker strike at rival Woolworths.

Commenting on how Coles managed the upsurge in volume demand, chief operating and sustainability officer Matt Swindells gave credit to the new centres, alongside “the agility of [its] network”.

“The automation itself has been rolled out in a very steady, considered manner, and has been very successfully deployed as we transitioned both [the Queensland centre] and [the one in NSW]. 

“The Witron system...was used to supplement volume required for Victoria, and it did not miss a beat. The ability to absorb a significant increase in volume and the way in which that automation can scale was absolutely magnificent.”

Coles opened the first centre in Queensland in April 2023, followed by the NSW facility in August this year.

Investment in the third automatic distribution centre in Victoria contributed to a net profit fall of three percent to $576 million for the half year ended December 31, 2024.