Woolworths opens first “dark store”

Australia’s leading retailer, Woolworths, has opened its first “dark store” in Sydney, used exclusively to fulfil online grocery orders.

The 7,000m² warehouse allows the chain to quickly fulfil online orders, day or night, with a layout designed to increase efficiency, reports Fairfax.

“The advantage for our online shopper is the range in store is designed according to their needs – that means we get orders to customers faster,” Woolworth’s general manager of multi-channel retail Kate Langford told Fairfax.

“We have more flexibility to be able to pick and deliver customers’ orders throughout the day – in a busy environment we are somewhat limited to when we can pick our online orders.”

Langford said it’s still too early to judge just how efficient the dark store will be, but the trial run in Sydney could pave the way for more dedicated stores to be opened in Melbourne and Brisbane.

Global retailers including Tesco and Waitrose use dedicated dark stores, which can be up to three times more efficient than using traditional supermarkets, according to a report by AT Kearney.