Supermarket giant Woolworths has started work on its first Australian eStore at Carrum Downs, in southeast Melbourne.

A 2,400 square metre facility is being added to the back of the grocery store and will house state-of-the-art automated picking technology to support the supermarket’s online orders.

The construction of the eStore is the first big step in Woolworths partnership with Takeoff Technologies which was announced in August 2019.

“We’re seeing rapid growth in online orders as our customers seek more convenient ways to reclaim time in their busy lives,” Woolworths director of eCommerce Annette Karantoni said.

“Our customers will only continue to look for faster and more flexible delivery options in the future. We believe smart fulfillment through our local store network is key to delivering this. We’re excited to see how this hyperlocal model develops and delighted to start our journey in Carrum Downs.”

Carrum Downs will be the first of three supermarket sites to test the new technology in 2020. The other confirmed sites are in Auckland and Christchurch, New Zealand.

The supermarket giant’s online sales have lifted by over 30 per cent in Australia in FY19.

The retailer believes the micro-fulfilment technology is key in meeting the growing demand for online groceries as it offers high volume long life products to online customers.