Woolworths unveils final step in NSW DC restructure

Woolworths is restructuring its NSW distribution centre operations, announcing two new facilities, closing one and repurposing another.

The company’s supply chain division Primary Connect will invest $400 million in building a 76,000sqm fresh-food DC in Western Sydney’s Wetherill Park, pictured above, which will serve more than 280 Woolworths stores across the state from 2023. It will have capacity to distribute more than 3700 fresh produce and chilled lines.

The new multistorey complex will replace the temperature-controlled facility at the Minchinbury Distribution Centre, which will close by 2024, with 330 staff being offered roles in other parts of the business.

A second new DC will be built at Kemps Creek, a 35,000sqm facility managing liquor stocks  in partnership with Endeavour Group to service more than 400 Dan Murphy’s and BWS outlets across the state from next year.

The existing Erskine Park Liquor DC will be converted into an ambient grocery facility once the Kemps Creek facility is operational.

Construction of both new DCs is contingent on NSW Department of Planning approval.

Woolworths Group CEO Brad Banducci said the facilities announced today mark the final step in what has been a major transformation of Primary Connect’s NSW supply chain network, following the Moorebank supply chain hub announced last year of which construction commenced last month.

“The development of the Wetherill Park facility will help us deliver high-quality fruit, vegetables and chilled goods to our customers fresher, faster, and more efficiently than ever before.

“Wetherill Park is strategically located in close proximity to a large number of our stores, suppliers and transport providers, making it an ideal base for our fresh food distribution in NSW,” said Banducci.

“The co-location of fresh and chilled operations across a multi-storey site will also help remove more than 11,000 truck movements off Sydney roads each year – delivering environmental, traffic and road safety benefits to the community.”

Primary Connect says the existing fresh network in NSW is nearing capacity, with products currently supplied from three sites, including two third-party facilities. Without the new DCs announced today, the company has limited capacity to handle range expansion or volume growth over the medium to long term.