German retailer Rewe Group has announced it plans to build seven additional warehouses by 2025 in order to expand its logistics capacity.
The group plans to invest around €600 million over the next four years in the project, with the focus on supporting Rewe’s supermarkets, according to the company.
Rewe also said it will boost automation capabilities in its warehouses, in order to drive efficiency.
"The dynamic growth of our grocery business requires additional warehouses throughout Germany," commented Frank Wiemer, board member of Rewe Group responsible for logistics, at the company announcement in Cologne.
"Without a new logistics offensive, we would reach capacity limits in the medium term. This would negatively affect our cost structures as well as the quality of logistics services for our markets. That is why the executive board and the supervisory board of the Rewe Group agree that we will initially invest around €600 million over the next four years."
Wimer added that the group is also looking to "systematically drive the automation of our logistics" through the adoption of automation.
"With our logistics centre in Neu-Isenburg, we have gained extensive experience with automation,” he said. “On this basis, we can now tackle a targeted degree of automation of the new warehouses. In doing so, we will also create the conditions for the future use of robots where this becomes necessary."
The first block of this new expansion will be three warehouse projects in Henstedt-Ulzburg, Wölfersheim and Magdeburg, which are set to create around 700 new jobs at Rewe’s logistics arm.
They will be designed according to the latest ergonomics and safety standards, according to the company.
The latter building has started construction in Magdeburg Rothensee, with active support by the local government, and will be the new national central warehouse for the company’s dry goods range.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.