Metcash has revealed that it has signed a long-term lease agreement with Charter Hall for the construction and leasing of a new “best in class” distribution centre at Gepps Cross in South Australia.
The new centre, which will be around 68,000 m², will replace Metcash’s existing facility at Kidman Park. The company said it expects the centre to “deliver operational efficiencies for our independent retailer network in South Australia, and provide access to a wider range of products than currently available through the DC at Kidman Park”.
The new Gepps Cross facility will also serve as the distribution centre for Metcash’s Australian Liquor Marketers operation in South Australia.
Metcash Group CEO Jeff Adams said: “This significant long-term investment for our independent retailers in South Australia reflects our continued focus on championing their success.
“Our retailer network will benefit from a greater range in grocery and perishables that will further underpin their ability to provide a quality, differentiated offer that is tailored to their local community.
“Our independent retailers already include some of the best stores in the world, and we expect today’s announcement will further strengthen the foundation for continued investment in the network.”
The announcement follows Metcash agreeing long-term supply agreements with Foodland multiple store owners the Romeo’s and Chapley’s, as well as the remaining members of the Foodland Supermarkets Board who are owners of Foodland supermarkets in South Australia (excluding Drakes Supermarkets).
These supply agreements were conditional on Metcash entering into a lease agreement for the new DC by 21 December 2018.
Construction of the new centre is scheduled for completion in mid-2020 and Metcash added that the centre will benefit local suppliers by providing an efficient route to market for their products through access to Metcash’s distribution network.