Supply chain shuffle and build as Woolworths Group completes modernisation

Woolworths Group’s supply chain arm, Primary Connect, has submitted proposals to build two new distribution centres (DC) in Western Sydney, effectively completing the modernisation of its New South Wales (NSW) supply chain network.

The proposals are for a new liquor DC in Kemps Creek and a new new fresh food DC in Wetherill Park. The proposal for Wetherill Park was lodged earlier this year and if approved, will see the Sydney Regional DC in Minchinbury close in 2024. Both new facilitates are subject to NSW Department of Planning approval.

The announcement comes a day ahead of Endeavour Group's first day of trading on the ASX following the demerger approved by shareholders last week. While Endeavour will operate as an independent entity, Woolworths and Endeavour will continue to partner across supply chain, information technology, customer loyalty and digital innovation.

The 35,000sqm Kemps Creek Liquor DC will be managed by Primary Connect and service more than 400 Dan Murphy’s and BWS outlets across NSW under a partnership agreement with Endeavour Group from 2022. Kemps Creek will provide ongoing employment for around 180 team members and a further 100 jobs will be supported during construction.

Primary Connect has agreed an initial five year lease on the site. It will replace the current Erskine Park Liquor DC, which will be converted into an ambient grocery facility to service Woolworths Supermarkets. Primary Connect has signed a lease extension at Erskine Park through to 2028.

Primary Connect Managing Director Paul Graham said: “We’re pleased to be partnering with Endeavour Group on the Kemps Creek development to deliver improved service to their store teams. It’s a major commercial agreement for Primary Connect, which recognises the scale and capability we can offer to external partners. Importantly, the project will also deliver hundreds of new jobs on the doorstep of the fast-growing Western Sydney Aerotropolis.”