Woolworths Group’s supply chain arm, Primary Connect, has started construction on the supermarket giant’s “next generation” $780 million distribution centre in Moorebank, Western Sydney.

The DC promises 75,000 sqm of floor space and will be built with automation in mind, and will sit adjacent to a regional DC which will see construction start later.

“The challenges of this last year have put a spotlight on the critical role our distribution centres play in providing the essential food and everyday needs Australian communities rely on,” said Woolies’ group chief executive Brad Banducci.

“We have ambitions to offer a more tailored range of products in our stores, [but] this has traditionally been constrained by what we can hold in our distribution centres.

“Once both centres are up and running, we’ll be able to carry up to 8,000 additional products in our range than we can in our existing facilities.”

And according to the grocery group, Moorebank is just the beginning: Woolworths Group has a $2.3 billion investment program set to create thousands of jobs across NSW over the next five years, though didn’t specify what projects it would be working on beyond the two DCs at Moorebank.