New wholesale distribution centre announced for Victoria

Metcash, owner of IGA and other retailers, has announced that it has entered into an agreement with Goodman Group for the development and lease of a new wholesale distribution centre (DC) in the Melbourne suburb of Truganina.

The DC will have an area of roughly 115,000 m² and will replace Metcash’s Laverton-based distribution centre. The company said that it expects the larger space to increase the competitiveness of its independent retailers in the region by making its operations more efficient and providing access to a wider range of products. Local suppliers are expected to benefit from having access to the Metcash distribution network, providing them with an efficient means of bringing their products to market.

The centre will have products for Metcash’s food and liquor retailers and will be equipped with semi-automated goods-to-person and layer-picking technologies.

“We are delighted to be able to announce this significant long-term investment for our independent retailers in Victoria, which is a reflection of our continued focus on championing their success,” said Metcash Group CEO Doug Jones.

“Supporting our decision to proceed was the success of our new DC at Gepps Cross in South Australia, which has been operational since December 2020, as well as strong growth in both our Food and Liquor pillars in Victoria and the recent renewal of a long-term agreement to supply FoodWorks stores.”

The distribution centre will be built with sustainability in mind and is aiming to adhere to the 5-Star Green Star sustainability rating from the Green Building Council of Australia.

Construction is scheduled to begin in the first half of financial year 2023 and it is expected that it will be completed in the middle of 2024.

Image credit: ©stock.adobe.com/au/alzay