1. News
May 30, 2018

Drakes Supermarkets to establish $80m grocery distribution centre

Australia-based retailer Drakes Supermarkets is planning to establish $80m grocery distribution centre in Edinburgh North, South Australia.

Australia-based retailer Drakes Supermarkets is planning to establish $80m grocery distribution centre in Edinburgh North, South Australia.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The company also received planning consent from the City of Playford for the distribution centre.

Drakes general manager Bob Soang worked on the planning process in collaboration with the City of Playford for the construction of the site.

The company has started preliminary works on the 104,000m2 development site and construction work is expected to create approximately 300 jobs in the region.

Scheduled to open in June next year, the site will create 120-150 full-time jobs once it is fully operational.

Soang said: “This is a major investment in the sustainable future of Drakes Supermarkets in South Australia.

“It’s also a long-term investment and vote of confidence in our loyal customers and suppliers.

“As a local family owned business, we are pleased to create so many jobs in the northern suburbs of Adelaide, which have faced many challenges in recent years.

“It will be the most advanced independent distribution and logistics centre in the state and is a key plank of our group’s vertical integration strategy within the supermarket sector.”

“Scheduled to open in June next year, the site will create 120-150 full-time jobs once it is fully operational.”

After completion, the distribution centre will be able to store approximately 23,000 separate lines of products, including grocery, dairy and frozen foods.

The company’s distribution and logistics centre on Stebonheath Road will also incorporate more than $12m of robotics under the high-tech warehouse picking system.

Soang noted: “Each year, Drakes Supermarkets spends about $20 million upgrading and refurbishing our stores across South Australia and Queensland.

“Now with this new distribution centre, we’re ensuring we’ll continue to offer the biggest range for South Australian shoppers for many years to come.”

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.