Coles promises fewer empty shelves as warehouse robots come online

Grocery giant Coles is promising better-stocked shelves and more curated product ranges for customers in NSW and Canberra as it unveils a new robotic warehouse in western Sydney.

The new automated distribution centre, which spans 25 rugby fields, together with a near-identical centre in Queensland opened 12 months ago, marks a $1 billion investment for Coles that will result in the closure of two manual warehouses nearby.

Prime Minister Anthony Albanese (centre right) with Coles chairman James Graham (right) and CEO Leah Weckert (centre left) in Kemps Creek on Tuesday.Credit: Steven Siewert

Coles chief executive Leah Weckert did not directly respond to questions about whether the automation would help the company lower its wage bill, pointing instead to the productivity and efficiency gains that would benefit shoppers.

“We’re able to put through double the amount of volume on half the amount of footprint, which makes it a lot more efficient in terms of the movement of those cartons.”

“Customers will definitely see an improvement in availability for their grocery products,” she told this masthead.

“Because of the technology that we utilise … we are actually able to do a lot more tailoring in our stores, which means that we can put a different product range in a different store to make sure that it really suits the needs of the local community.”

The Kemps Creek Coles centre is located approximately 43 kms from Sydney Airport.Credit: Steven Siewert

The Kemps Creek warehouse spans 187,000 square metres and will service 229 stores in NSW and the ACT by Christmas when it reaches full capacity, employing 350 staff and 160 workers from Witron, its logistics and warehousing system provider.

The nearby Smeaton Grange and Eastern Creek warehouses are due to close their doors in early 2025 and will result in a combined 350 job losses.

Prime Minister Anthony Albanese, who attended the distribution centre’s unveiling, said Coles’ latest investment highlighted the confidence big businesses had in the national economy.

“The driver of jobs will always be the private sector.” “What we see around us here is the benefit of new technology driving productivity,” he added.

The mayor of Penrith says the new Coles distribution centre will create 500 jobs.Credit: Steven Siewert

Penrith mayor Todd Carney said the Coles warehouse will deliver about 500 new jobs to the region, and would help farmers and producers get their goods out to the market.

“With [Western Sydney] airport coming on board in two years’ time, it’s important we have these facilities available,” he said. “These are really big investments in western Sydney to make sure we have jobs in the future.”

With customers pushing to save on their grocery shop amid cost of living pressures, Weckert said Coles’ budget home-brand range has enjoyed strong growth.

“[They’re] common items that you see in most households. It’s brightly coloured in the yellow, which means it’s a real signpost as you’re walking down the aisle, it’s easy to identify.

Australians, when they see yellow, think of value because we’re so used to seeing special tickets, so it’s taken a little bit of a cue from that,” the Coles boss said.

“We are definitely putting that range in because we know customers are looking for as many options as they can find to substitute products that are more affordable.”

The major supermarkets have come under scrutiny over the past year amid rising inflation, with many customers incensed at their billion-dollar profits amid cost of living pressures.

Coles and Woolworths will both face greater regulation after the Albanese government said it would adopt all of Dr Craig Emerson’s 11 recommendations in his review of the food and grocery code of conduct, which will see the code made mandatory, a new anonymous supplier and whistle-blower complaints pathway and higher penalties for breaching the code.

The ACCC has also been ordered to conduct a year-long inquiry into the pricing practices in the supermarket sector and is due to hand an interim report to the federal government by August 31.

Coles will reveal its 2024 financial year results on August 27.

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