Myer 'fulfilment' hubs serve online shoppers
Known as "fulfilment" centres, the warehouses are dedicated to the retailer to store and distribute goods bought and returned through the online business.
As online retail grows at a rapid pace, the drive to deliver orders to customers quicker will become a competitive advantage.
The move by the retailers to lease a warehouse directly will also intensify the competition in the industrial market, where a number of businesses and cargo firms are looking for property.
Although food retailers Woolworths, Coles, IGA/Metcash - among others - have had distribution centres for years, the trend has not been as prevalent in the apparel and dry goods sectors.
Myer opened its centre at Maidstone, Victoria, in August. It is managed by Cargo Services and is stocked with 15,000 Myer items frequently ordered online.
Myer's chief executive, Bernie Brookes, said the progressive opening of the online fulfilment warehouse would provide logistics support for its online store.
"Our online fulfilment distribution centre, which has been built to distribute our 15,000 best-selling online items, opened in October, significantly transforming our online fulfilment capability. It will underpin the online store's ability to meet projected volumes during the upcoming peak trading period," Mr Brookes said.
Myer general manager online, Richard Harrison, said the deal would support Myer's existing store fulfilment model and ensure Myer was well placed to provide improved online customer service moving into the Christmas period.
Michael Fenton, the head of industrial, Jones Lang LaSalle Australia, said the growth in online retailing and the need to get products to customers swiftly and efficiently, would encourage some retailers to set up networks of local depots.
Mr Fenton said with the strong take-up of e-commerce, "specialised" or "purpose-built" real estate would become more common. "We'll start to see an emergence of multiple logistics hubs closer to major population clusters, to meet delivery time expectations and changing consumer demand," he said.
Frequently Asked Questions about this Article…
Myer's new fulfilment centre is a dedicated warehouse in Maidstone, Victoria, designed to store and distribute goods bought and returned through their online business. This centre helps Myer deliver orders to customers more quickly, providing a competitive advantage in the growing online retail market.
The opening of Myer's fulfilment centre is part of a growing trend in the retail sector to enhance online capabilities. This move is expected to intensify competition in the industrial market as more retailers seek to lease warehouses to improve their logistics and delivery times.
Fulfilment centres are becoming more common due to the rapid growth of online retailing. They allow retailers to store and distribute goods efficiently, meeting the increasing demand for faster delivery times and improving customer service.
Myer's fulfilment centre plays a crucial role during peak trading periods by supporting the online store's ability to handle projected volumes. This ensures that Myer can meet customer demand efficiently, especially during busy times like the Christmas season.
The fulfilment centre complements Myer's existing store fulfilment model by enhancing their logistics capabilities. This ensures that Myer can provide improved online customer service and meet delivery expectations more effectively.
Specialised or purpose-built real estate, like fulfilment centres, is becoming more significant as online retail grows. These facilities are designed to meet the specific needs of e-commerce, such as efficient storage and distribution, helping retailers keep up with consumer demand and delivery expectations.
The growth of e-commerce is driving the development of logistics hubs closer to major population clusters. This helps retailers meet delivery time expectations and adapt to changing consumer demands, making logistics more efficient and responsive.
Fulfilment centres offer competitive advantages by enabling retailers to deliver orders more quickly and efficiently. This improves customer satisfaction and positions retailers like Myer to better compete in the fast-paced online retail market.
Call 1300 880 160
Start a chat
Schedule a call
