German Supermarket Chain Rewe Steps Up E-Commerce Obstacle

Germany’s second-largest supermarket chain Rewe opened a brand-new logistics centre on Friday to serve its fast-growing online groceries company as e-commerce competitors hots up in thefoodretail sector.Rewe, along with bigger rival Edeka, had actually been mentioned by analysts as a possible German customer for Britain’s Ocado, which has been expanding globally with a string of offers for its robotically operated e-commerce grocery warehouses.State-Of-The-Art Logistic Centre Rewe has spent about EUR80 million ($94 million

)on what it referred to as”among the most modern-day logistic centres “in Europe. The website outdoors Perfume is the size of more than 2 soccer pitches and has 38 truck filling bays.Online grocery shopping has been slow to take off in Germany since the country has a high density of grocery store and the dominant discounters

, Aldi and Lidl, have actually been slow to accept e-commerce. Rewe has invested heavily in e-commerce over the past couple of years and Amazon has actually also begun providing fresh food in Germany,

its most significant market outside the United States.A Promising Financial Investment Rewe stated its online grocery service had actually broken through EUR100 million of sales last year, still only a small portion of the group’s overall

sales of EUR58 billion.Management speaking with

firm A.T. Kearney anticipates e-commerce to account for 3%of Germany’s grocery market by 2020, up from just 1 %in 2016. Unlike at Rewe’s existing storage facilities, where staff members

approach 15 km per shift to select products from shelves, the brand-new centre has items brought to employees by an automated shuttle system from zones

kept at various temperatures.Rewe said the system is far more affordable and need to permit more flexible processes, adding that it hopes ultimately to be able to serve online customers with fresh meat and cheese such as that served at grocery store counters.News by Reuters, edited by ESM. Click to sign up to ESM: European Grocery Store Publication.

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