South African retailer Woolworths is expanding its network of dedicated fulfilment centres, known as dark stores, as it seeks to grow its online shopping business and improve delivery services.
The retailer’s chairman, Clive Thompson, disclosed the plan in Woolworths’ annual report for the financial year ended June 28, 2026, describing the continued rollout of dark stores as an important opportunity for its South African operations.
Dark stores are facilities designed specifically to process online orders and are not open to walk-in customers.
Woolworths opened its first dark store in Cape Town’s central business district in August 2024 to support its on-demand Woolies Dash delivery service.
The company said the facility significantly improved product availability for online customers in Cape Town’s city centre and surrounding areas.
Woolworths has since expanded its online fulfilment infrastructure. As of June 2026, the retailer had six distribution centres, three cross-dock facilities, one outsourced Fashion, Beauty and Home online fulfilment centre and one food dark store in South Africa.
The company also opened a new online fulfilment centre in Wynberg, Cape Town, in June to support the expansion of Woolies Dash.
Woolworths said the Wynberg facility was strategically located to serve the growing number of online customers in Cape Town’s southern suburbs.
The facility is also expected to reduce the number of online orders being fulfilled from nearby conventional stores, easing pressure on those outlets and allowing them to better serve customers shopping in person.
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The expansion comes as Woolworths’ online business continues to grow.
Revenue from Woolies Dash increased by 19.6 per cent during the financial year, while online sales accounted for 7.3 per cent of Woolworths’ South African Food sales.
Overall online turnover increased by 5.7 per cent, rising from R7.78 billion to R8.22 billion during the 52-week period.
Woolworths said online orders in South Africa are fulfilled through a combination of selected retail stores and dedicated dark stores.
The retailer also uses scheduled delivery systems and cold-chain processes to maintain product availability and quality, particularly for food orders.
Thompson said the company was encouraged by progress in its online operations and continued investment in technology and fulfilment capabilities.
“We are seeing encouraging progress in our online business, supported by continued investment in the capabilities needed to serve customers with greater convenience, consistency and efficiency,” he said.
He added that Woolworths remained committed to adopting technology as part of its efforts to improve its operations and customer experience.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
