Coles (ASX:COL) will make a $146 million pre-tax provision in its first-half results as it moves to modernise its supply chain network.
The supermarket giant, which was spun out of Wesfarmers and listed on the ASX in November, says it has signed contracts with logistics firm Witron to develop two new automated ambient distribution centres.
Coles says it will spend a total $950 million on the centres, one in Queensland and one in NSW, over six years.
Coles CEO Steven Cain says with the signing of these important contracts, Coles is one step closer to implementing a key element of its supply chain modernization strategy.
Shares in Coles (ASX:COL) trading 0.95 per cent lower at $12.47.