Adairs have announced they are exercising their right to take over warehouse operations from DHL:

Adairs advises that it has entered into an agreement with DHL Supply Chain (Australia) Pty Ltd (DHL) under which it will take over operational control of its’ National Distribution Centre (NDC) from 6 September 2023.

I see this as positive medium term, even better longer term. Adairs will outlay $18 million to takeover the warehouse equipment and systems, plus $2 million more in "transition costs".

The company expects this to save $4 million in the first year after the transition and more following years. From the announcement:

Adairs expects this initiative will be modestly EPS positive from year one, with payback within four years.

In the long term i'd expect this to give them better control over service which should help the online channel.

Interesting to note that in the Strawman meeting in April management noted the issues with DHL and believed they had worked through them:

we've now get very clear SLAs and very reliable service.

Not clear why that's turned around so quickly: maybe DHL wasn't meeting the SLAs, or perhaps the cost/benefit meant it made sense.