Countdown fast forwards opening of new $100m distribution centre in Palmerston North to cater to surging North Island demand

Monday, 30 August 2021

Sally Copland, Countdown’s director of CountdownX, the business’ eCommerce arm, says alert level 4 has put the entire supermarket network under extreme pressure.

Supermarket giant Countdown has opened its new $100 million distribution centre in Palmerston North three weeks ahead of schedule because of huge lockdown demand.

Shoppers have reported shortages of a wide variety of goods in supermarkets since the start of the lockdown.

The new centre is the size of four rugby fields at 38,000 square metres, and three times the size of the old facility.

The company was going to take eight weeks to transition from the old to the new one but has brought that forward by three weeks because of pressure on the supermarket operation in the North Island.

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Countdown's new distribution centre in Palmerston North should help the supermarket giant cater to North Island customers better, says Copland.

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In the last week Countdown has sent just under 3.5 million cartons of food and groceries from its four distribution centres to its stores around the country, including an extra 100,000 crates of fresh fruit and vegetables, an increase of 25 per cent over the previous week.

More than 20,000 online shopping orders have been delivered to “priority assistance” customers since lockdown started, and a further 4500 customers had been added to the online service.

Sally Copland, Countdown’s director of CountdownX, the business’ eCommerce arm, said alert level 4 had put the entire supermarket network under extreme pressure.

The new centre would help with spikes in demand, happening now, and also cater for population growth and increased customer demand.

Auckland distribution centres were dealing with incredible demand. By opening Palmerston North early Countdown would be able to relieve some of that pressure and better service customers around the North Island, she said.

“Thanks to our Palmerston North team, our supply partners and our transport carriers all pulling together, we can start sending stock to stores from today.”

Countdown’s online shopping services had also come under intense pressure over the last week.

“Usually around 12 per cent of our sales are online, which in itself is world-leading for an online grocery business, however this week we have seen more people than ever trying to shop online and it’s fair to say that’s been extremely challenging,” Copland said.

There was still huge demand for slots and deliveries, “but we are doing everything we can to make sure these are freed up for the people who need online shopping the most”, Copland said.

The new centre had 200 staff, including 70 new team members.

By the end of September, it would deliver to 55 stores across the North Island, and when fully operational, would move about 450,000 cartons of food and groceries each week, nearly double the current Palmerston North volume.