Coles $146m provision for supply chain upgrades

Company News

by Anna Napoli

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.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.