The federal and Victorian governments have thrown their financial support behind Cotton On’s plans to further capture the Australian and US markets.
The casualwear giant is the recipient of a $750,000 grant from the Geelong Investment and Innovation Fund (GIIF). Victorian premier John Brumby said the cash injection would fund the expansion of Cotton On’s global head office in north Geelong and the relocation of its distribution facility to Lara, Victoria.
“Cotton On’s expansion will create 300 new jobs in administration and distribution and further boost the company’s presence in the Australian market and in the international market place, particularly in Asia and the United States,” Brumby said.
Cotton On Group CEO Peter Johnson said the company’s foray into international markets had necessitated its infrastructure overhaul.
“With our expansion into the northern hemisphere we have restructured our planning, buying and visual merchandise departments to deliver ranges to both hemispheres, adding resources to each department,” Johnson said.
“We opened 170 new stores last year and plan to open a further 200 this year. Our specific growth plans are confidential, however I can confirm that we plan to complement our store presence on the west coast of California with an east coast presence before Christmas this year.”
Johnson revealed the first stage of the head office renovation is under way and due for completion in coming weeks. The relocation of Cotton On’s distribution centre to Lara is due to be finalised next month.
The Lara centre will replace Cotton On’s existing four distribution bases and will bring its six brands under one roof.
“By consolidating under one facility we have flexibility of space and resources across all brands,” he said. “We also have economy of scale that allows us to implement a warehouse management system and automation.”
He revealed one million units will pass through the new Lara facility each month.
Cotton On Group operates the Cotton On, Cotton On Kids, Cotton On Body, Rubi, Factorie and Typo brands and is owned by Tania and Nigel Austin.
The Geelong Investment and Innovation Fund launched in 2007 and is a partnership between Ford Australia and the federal and state governments.
The fund aims to drive economic growth in regional Victoria, with $24 million in grants available to successful applicants.
Erin O’Loughlin.