Inside VidaXL’s Latest Expansion Plans

Power Retail By Power Retail | 13 Jan 2021

VidaXL is ramping up its online offering by introducing a new distribution hub in Melbourne.

The announcement comes from Frasers Property Industrial, which will be building the 81,000sqm hub for the e-commerce retailer.

VidaXL is a Netherlands-based e-commerce retailer, which entered the Australian market in 2014, and has YoY growth of 100 percent.

“This transaction is the first in our new Canvas West Industrial Estate, in Tarneit,” explained Anthony Maugeri, the General Manager Southern Region for Frasers Property Industrial.

“It demonstrates Frasers Property Industrial’s adaptability as a business and flexibility in product mix to pivot from core pre-lease development activities to meet changing market conditions. The entire transaction was undertaken online due to the current COVID-19 restrictions across two countries (Australia and the Netherlands) over the last six months.”

via VidaXL

Aerial view of the planned VidaXL distribution hub | via VidaXL

The plans for the distribution hub include an undercover area of 80,960sqm, with a warehouse of 68,600sqm.

“The new national distribution centre is designed to help VidaXL accommodate its rapid online business growth and customer demand which is in-line with the rise of eCommerce and a structural shift towards online retailing,” Maugeri explained.

The rapid growth of e-commerce throughout Australia has further pushed the development of the distribution centre, with August 2020 being one of the biggest e-commerce shopping months in history. According to Australia Post, the top five eTail shopping locations all taking place in Victoria.

Between March and August, more than 8.1 million households shopped online, which is an increase of 16 percent from the same time last year.

“CBRE forecasts an additional 350,000 sqm of additional new space will be required each year to accommodate growth in e-commerce. The VidaXL transaction reflects the growing e-commerce trend in Victoria and its new facility will be fully racked and hold over 100,000 pallets,” shared Todd Grima, the Director, Advisory and Transaction Services Industrial and Logistics at CBRE.

The distribution hub will be completed by April 2022.

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