Woolworths eStore in Carrum Downs

Australian retailer Woolworths has announced plans to construct a new automated customer fulfilment centre (CFC) in Auburn, New South Wales to better serve the online grocery needs of Western Sydney customers.

The facility will be built in partnership with Knapp, whose automation technology will help Woolworths' personal shoppers pick and dispatch up to 50,000 home deliveries a week in Western Sydney.

The plans come as Woolworths reported e-commerce sales growth of 92% from July-December 2020.

WooliesX managing director Amanda Bardwell says: "To keep pace with the demand (for online shopping), we need to innovate with new technology to boost capacity and ensure we're continuing to offer the best possible online grocery experience.

"This fulfilment centre will deliver a step change in our online offer for our Western Sydney customers. With Knapp's world-class automation, our team of personal shoppers will be able to pick many more orders - offering our customers faster delivery options and extra windows to choose from."

Subject to planning approvals, construction is expected to commence in 2021, ahead of an operational launch by 2024.

Knapp vice president food retail solutions Rudolf Hansl says: "In collaboration with Woolworths, we've developed a highly automated and economical concept for online grocery. Our proven technologies enable fast and efficient customer order fulfilment. We're very pleased to partner with Woolworths and look forward to working together for years to come."

Knapp automation technology is already in use at Woolwoths' micro-fulfilment systems at Carrum Downs, Victoria; Moorehouse, Christchurch; and Penrose, Auckland.