Axfood Announces New E-Commerce Warehouse in Gothenburg
July 15, 2021 at 12:55 am EDT
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With a new, automated e-commerce warehouse in Backa in Gothenburg, an expanded, automated high-bay warehouse in Backa and automation of the new fruit and vegetable warehouse that is currently being built in Landskrona, Axfood's purchasing and logistics company Dagab is now taking the next step in development of a modern logistics platform that will ensure higher volumes and higher efficiency for many years to come. With these investments totalling EUR 65 million during the period 2021-2024, Axfood has now laid the foundation for the future's logistics structure. Dagab is already at the forefront in developing the logistics of the future, and the journey to more automation is now continuing. Recently installation of the automation solution in the new logistics centre in Bålsta was begun, which will be completed in 2023. In addition, three new initiatives were announced on July 15, 2021 that will strengthen the entire Axfood family and external customers going forward, and which together with the new facility in Bålsta will make up the foundation of Axfood's logistics platform for many years to come. In Gothenburg, Dagab plans to build an all-new highly automated e-commerce warehouse. The ambition is to establish the new warehouse adjacent to the distribution centre in § on the property which Dagab currently owns. An agreement has been signed with Witron, a market leader in dynamic warehouse and order picking systems, to deliver the automation solution for the new e-commerce warehouse, which will have five times higher capacity than the existing warehouse. Additionally, the existing high-bay warehouse in Backa will be strengthened and expanded with two, new automated aisles to add space for more pallets. This will increase the total capacity by approximately 30% and thereby ensure that the warehouse will be able to meet future growth. For this expansion, an existing agreement with Daifuku is being extended for an investment worth EUR 3 million. In addition, Dagab has signed an agreement with KNAPP to automate parts of the new fruit and vegetable warehouse in Landskrona, which is expected to be completed at the end of 2022. KNAPP already provides the automation solution that Dagab uses at the perishables warehouse in Jönköping. With the new automation in Landskrona, which is expected to be fully operational in 2024, warehouse efficiency and capacity increases, and automation and manual picking is handled side by side. At the same time, flexibility with volume increases is improved. The total contracted investment with KNAPP will amount to EUR 14 million during the period 2021-2024.
Axfood AB is a Sweden-based company engaged in the food retail and wholesale trade in Sweden. The Companyâs retail business is conducted through three wholly owned chains: Willys, specializing in discount food retail; Hemkop, which is engaged in the sales of food retail products, and PrisXtra, which is a grocery chain serving the Stockholm market. The Company owns and operates over 200 retail stores. The Companyâs wholesale business is conducted through Dagab, which supplies Axfood Group and the Vi chain, and Axfood Narlivs, a convenience store wholesaler. Axfood has a portfolio of private labels, including Hemkop, Garant, Garant Ekologiska varor, Aware, Saklart, Func and Fixa. Among others, the Company operates via Middagsfrid AB. The Company's major shareholder is Axel Johnson AB.