Myer Executive Resigns Amid Stalled Robotics Initiative and Share Price Plunge

Myer's Chief Supply Chain Officer Darren Wedding has resigned after 15 months in the role, a departure that coincides with ongoing struggles at the 125-year-old department store's new National Distribution Centre (NDC) and a significant drop in its share price. The resignation was announced on Monday, with the company's stock slipping 5 percent in early trading.

Wedding was appointed in 2025 by Executive Chairwoman Olivia Wirth to oversee the development of the multimillion-dollar NDC in Ravenhall, Melbourne. Launched in 2024, the facility was designed to utilize 200 robots for packaging and delivering online orders. However, the center has encountered major operational challenges, primarily stemming from issues with its computer system not synchronizing with the robots, leading to difficulties in processing online orders.

Wirth had previously alerted investors to these operational problems in September 2024, and continued to report on the ongoing issues a year later. Despite engaging external management consultants at an estimated cost of $48 million, the problems have persisted. Myer's share price has fallen by over 75 percent from its 2024 peak.

Professor Gary Mortimer, a retail marketing expert at Queensland University of Technology, noted that changing consumer habits are challenging traditional retail models. "The significant growth in online shopping we saw during the (Covid-19) pandemic, has continued," Mortimer stated. He highlighted that legacy retailers like Myer, which historically relied on in-store experiences, are facing increased costs due to the need to hire additional staff for distribution during peak periods, especially as online sales constitute a substantial portion of revenue.

In response to Wedding's departure and the ongoing NDC issues, Myer confirmed that Chief Financial Officer Kathy Karabatsas has assumed responsibility for the supply chain network. The company is also relying on operator Toll Group and a Third-Party Logistics Provider (3PL) for contingency, a strategy that was also employed during the 2025 peak season. Myer stated that Wedding left the business for personal reasons and thanked him for his contributions to reaching the proof-of-concept phase for the NDC.

The company indicated that further extensive design and testing are being undertaken for the NDC's proof of concept to ensure its full potential is realized, acknowledging the project's scale, complexity, and challenges faced under previous management. Remediation of the NDC remains a key business focus. Myer reportedly does not plan to hire a new chief supply chain officer. However, with online sales already up 5.6 percent for FY26, Mortimer believes a replacement for distribution oversight is crucial, pointing to Woolworths and Coles as benchmarks for effective online demand management through significant distribution investments.