Axfood subsidiary Dagab will cater to external customers in the convenience trade from its existing warehouse in Örebro, Sweden.
Dagab, which specialises in logistics and distribution in the grocery trade, will supply goods for the food retail sector from its new facility in Bålsta.
The decision will help Axfood optimise its logistics operations, the company noted.
The decision to use the Örebro facility for the convenience trade will allow operations to continue there.
Axfood also plans to expand the facility and transfer some volumes from warehouses in Skellefteå and Sätra by the first half of 2026.
'Better Quality, Higher Efficiency'
Hans Bax, managing director of Dagab, stated, "Concentrating convenience trade volumes to our Örebro warehouse means that we can create the necessary conditions to deliver better quality, higher efficiency, and also at the same time secure capacity for further growth in both food retail and the convenience trade."
Axfood commenced the construction of an automated logistics centre in Bålsta in 2019 to supply goods to all Axfood’s store formats.
The company aimed to use the facility as the main supplying warehouse for all group-owned and retailer-owned stores operating under the Willys, Hemköp, Tempo, and Snabbgross banners in the Mälardalen region and northern Sweden.
Logistics Optimisation
Axfood is also implementing several other initiatives to optimise the handling of volumes between Dagab’s warehouses in the southern parts of Sweden.
The company is investing in the existing high-bay warehouse in Backa in Gothenburg, which is being expanded with two new automated aisles to improve the storage capacity.
In late 2022, Dagab’s new, modern and significantly larger warehouse for fruit, vegetables and flowers was launched in Landskrona.
In 2023, an automation solution was installed at the facility that became operational earlier this year.
Bax added, "The development of the logistics of the future in recent years will result in efficiency improvements and increased capacity, and will be essential for us to provide a stronger customer offering and a competitive edge for our group’s concepts."
