Cotton On Announce $40 Million Distribution Centre

By Julian Thumm | 12 Sep 2016

Cotton On has announced a joint $40 million investment in a new distribution centre at Avalon Airport to help drive online order fulfilment.

Cotton On Group has revealed the construction of a new distribution centre at Avalon Airport near Geelong. The new centre represents a joint $40 million investment together with Avalon Airport and the Victorian Government.

The 35,000 square-metre facility will be a purpose-built hub for stock distribution to the company’s network of 778 Australian stores. It will be able to process 300,000 products per day and is designed to keep pace with the company’s growth predictions. The new centre will also help improve delivery of Cotton On’s online orders.

“In e-commerce, it’s that last leg that’s critical in delivering to our customers’ demands, so this investment is largely around that last leg of our supply chain,” group CEO Peter Johnson told Fairfax Media.

The new facility will see Cotton On become the anchor tenant in the new 40-hectare industrial precinct. According to Fairfax, Avalon Airport will provide three-quarters of the investment, with the Victorian Government spending $1.5 million developing the precinct.

Cotton On began life in Geelong and maintains its headquarters there.

“We are incredibly proud of our Geelong heritage and the contribution we have been able to make to the Geelong community over the last 25 years. We are thrilled to be part of the development of the new industrial precinct at Avalon Airport,” said group CFO, Michael Hardwick.

Victorian Premier Daniel Andrews visited the North Geelong site for the announcement.

“With this fantastic investment from Avalon Airport and the Cotton On Group, Avalon’s new industrial and commercial jobs hub will really take off,” Andrews said.

Over the next decade, the project is expected to create 750 direct jobs onsite and up to 1,100 indirect jobs.

The project is expected to be completed by mid-2018.

 

 

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