Coles is investing $880 million into a new Automated Distribution Centre (ADC) in Truganina, Victoria – the third, and largest, facility it will be partnering with Witron Australia on.
The first ADC opened in April 2023, located in Redbank, south-west of Brisbane. At 66,000 square metres, Coles stated at the time it was the largest of its kind in the Southern Hemisphere. A similar facility opened in western Sydney in August 2024, with the two projects representing the company’s single biggest capital investment, of more than $1 billion.
Both use technology from Witron Australia, which has allowed them to process twice the number of cases and hold twice the number of pallets compared to one of the company's regular DCs.
Now Victoria is getting in on the action, with the newly commissioned project planned to have approximately 15 per cent more capacity than Coles’ New South Wales and Queensland ADCs. Expected to commence in FY25 and to take up to five years to complete, the Truganina facility will have the ability to process 4.6 million cartons per week.
Coles has entered into an agreement for lease for the development of the Victorian facility, and stated it expects to recognise a provision of around $35 million before tax in 1H25 relating to future closure and site reconfiguration costs associated with the project.
Once completed, the new ADC will service all Coles stores in Victoria and Tasmania and integrate into the company’s existing supply chain in South Australia and Western Australia.
Coles managing director and CEO, Leah Weckert, said this was another important step in the company’s business transformation, with investment focused on technology to enhance product availability and improve efficiency across the supply chain.
“This new automated distribution centre in Victoria will complement our existing sites in Queensland and New South Wales, enabling us to drive productivity and further capitalise on the advantages of world- leading automation technology,” said Weckert.
Coles has completed several infrastructure projects this year, including Customer Fulfilment Centres in Sydney and Melbourne to support its Coles Online customers. The Mebourne facility is also in Truganina, establishing a strong foothold for the company to service Victoria.
