Challenging time for Reject Shop
AN Ipswich-based distribution centre for a large Australian chain store was extensively damaged in last month's flood, severely impacting its trading
The Reject Shop's $16 million warehouse in the Citiswich Business Park only opened in June last year, but was battered by recent floods.
The monster 26,600 sq m building supplied stock to 90 stores in Queensland and NSW.
In a company announcement made this week, managing director Chris Bryce said its operations have been “impacted significantly” since flooding on January 12 this year.
“This has had a consequential adverse impact on sales and costs. As a result, trading in January and February to date has been below expectations,” Mr Bryce said in a statement.
“The Ipswich Distribution Centre is currently inoperable and although some capacity will likely become available in March, it will not be operating optimally until early next financial year.
“This will stretch our existing capabilities and disrupt service to stores during the half and will also require considerable planning prior to re-opening the facility.”
He said it will be a challenging time for the business in the short term, but the company was moving closer to business as usual with each passing week.
A spokesperson for the Walker Corporation, the developers behind the Citiswich estate near Dinmore, said sales and leasing activity at the development are looking good.
“Negotiations are continuing with a number of blue chip tenants for purpose-built facilities at the estate and the company expects to announce a number of significant new deals in the coming months,” they said in a statement.
The statement said less than five per cent of the estate was affected by the flood event with waters reaching a height of 1.5 metres.
“Minor clean-up works were required once the flood waters had resided. The floodwaters, unlike in most other locations, did not leave any debris and mud within the estate,” it said.
“Walker was able to clean up the site and re-connect power to the estate within 24 hours, and all roads and infrastructure remained undamaged and fully operational.”
Founded in 1981 as a single-store retail operation in Victoria, The Reject Shop now operates 196 stores across Australia, including one at Orion Springfield.
So far this financial year The Reject Shop has opened 17 new stores across Australia.