Supermarket group Axfood has signed a letter of intent with Witron regarding the use of the company's automation technology and with the municipality of Kungsbacka for the construction of a logistics center in Frillesås, Sweden. Commissioning and ramp-up are planned for 2030.
Axfood announces that the new, highly automated logistics center will create additional capacity and increase efficiency in southern Sweden. Axfood and Witron already have a multi-year partnership – the experts from Parkstein also supplied the automation solution for the group's logistics center in Bålsta.
In addition to the agreement with Witron, a letter of intent was also signed with the municipality of Kungsbacka to locate the new logistics center in Frillesås in the southern part of the municipality. Axfood intends to enter into a long-term lease agreement for the logistics property. Discussions with potential landowners are currently underway.
Building for the future
“We are building for the future and investing to flexibly and efficiently meet future demand for goods deliveries both to the group’s own branches and to those of our customers”says Simone Margulies, President and CEO of Axfood.
The planned logistics center will cover an area of approximately 90,000 square meters and will be certified according to environmental standards. It will handle the picking and delivery of goods in all temperature zones for Axfood's supermarkets – primarily in southern Sweden. The facility is specifically designed to support the group's expansion plans with increased capacity and efficiency, larger volumes, and a broader product range.
Dagab CEO H. Bax
“It’s a good feeling to be taking the next step in developing our logistics structure in southern Sweden. By establishing a facility in Frillesås, Kungsbacka, we will be able to adapt more efficiently to the future development of the food retail sector. With our logistics center in Bålsta, we already have experience with such facilities and are confident in implementing this project together with our automation partner”says Hans Bax, Managing Director of Dagab.
To optimize logistics processes, the new logistics center in Kungsbacka will primarily handle the volume for the food retail sector and, above all, replace the existing warehouse in Backa.
At the same time, the new logistics center is designed to handle volumes currently managed from the warehouses in Jönköping and Hässleholm. Fruit, vegetables, and flowers will continue to be handled from the warehouse in Landskrona. Overall, Axfood expects the new logistics center to increase its capacity in southern Sweden by at least 20 percent compared to current volumes.
The investment required for the future automation solution is estimated at €260 to €280 million for the period from 2025 to 2030. With the selected automation solution, it is assumed that the investment will be at the upper end of this range.
The Axfood family also includes Urban Deli and the subsidiaries Apohem and Eurocash. The group employs approximately 15,000 people and generates sales of over 85 billion Swedish kronor (7.2 billion Swiss francs). Axfood has been listed on the Nasdaq Stockholm since 1997; its main shareholder is Axel Johnson AB. Further information can be found at www.axfood.com.
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