Myer’s troubled robotic warehouse costing it dearly
Myer had to revolutionize the supply chain of the mammoth robotic warehouse and revolutionize his ability to fulfill the online order.
But the operation at the foot of Melbourne was nothing more than a disaster. Heavy weight on the lower lineTo send shareholders to their latest dividends and shares that have fallen to their lowest levels in three years.
Although the problems in the National Distribution Center in Myer’s Ravenhall Melbourne suburbs have already been announced, the price tag to correct them has not been until Tuesday.
Myry, the warehouse will cost 32 million dollars and the work will not be completed until 2026/27, he said.
Meanwhile, in October, it hires a third -party logistics provider to start handling online orders during the most intense holiday period.
In a statement on Tuesday, Myer accused the tank’s problems for a big decline in full -year earnings.
The retailer made a profit of $ 36.8 million with a 30 percent decrease in 2024/25 compared to the previous year – but in a statement to Olivia Wirth analysts, the snow would be fixed even if there were no problems in the national distribution center.
Considering the decline of profit, Myer chose to pay a final dividend for the first time since 2021 after 2.5 cents per share in March.
Disappointed shareholders reacted by selling and sent Myer shares to 48.7 cents by 23.8 percent.
About twice the 40,000 square meters – about twice the Melbourne Cricket field – the warehouse has been a disaster from the very beginning.
Two years late to open up, and in August 2024, one month before doing so, a worker was crushed to death by responding to an item stuck in one of the 200 robots of a warehouse.
Later, during the important holiday trading period, a significant amount of clothes – mostly special brands sold for the high profit margin of Myer – in the warehouse “trapped” and the company’s estimated $ 16 million lost to the company.
Ms. Wirth, the CEO of Qantas loyalty, said that Myer’s distribution center was overhauled after being overhauled, he said he still expects to see a cost of $ 20 million.
In a brighter note, Mrs. Wirth said that Myer started to benefit from Premier Investment’s portfolio of five clothing brands – Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E.
In the first seven weeks of the new fiscal year, sales increased by 0.5 percent, increased by 0.5 percent to 2024/25 to 3.68 billion dollars.
Wirth said there was a transition to the work in the midst of a multi -year transformation of the year.
“We are making great progress in our growth strategy,” he said.
“We will continue to work for our plans to increase growth and build what we believe will be the most powerful retail platform in Australia.”
Myer ended with a net cash of $ 168.1 million with an increase of $ 54.3 million from the end of 2023/24.
However, due to non -cash accounting issues related to the acquisition of clothing brands, the legal result was still red with a net loss of $ 211.2 million.
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