Swedish food retailer Axfood AB on Thursday announced plans for a new highly automated logistics center in southern Sweden as it reported higher third-quarter profit on strong sales.
The company said it has signed letters of intent to locate the facility in Kungsbacka and use automation technology from German specialist Witron, with completion planned for 2030.
The project follows the launch of a similar automated warehouse near Stockholm and is part of a broader strategy to increase capacity and efficiency.
A previous company announcement estimated the investment for the automation solution would be up to 280 million euros.
For the third quarter, Axfood's adjusted operating profit rose to 1.1 billion Swedish kronor from 1.01 billion kronor a year earlier.
Net sales increased 6.6% to 22.3 billion kronor, which the company attributed to gaining market share.
"We have also initated work to establish a new highly automated logistics centre in Kungsbacka which will strengthen the Group's product supply in southern Sweden," President and CEO Simone Margulies said in a statement.
Axfood said its performance was driven by its discount chain Willys and its recently acquired hypermarket City Gross.
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Swedish food retailer Axfood AB said Thursday it plans to build a new highly automated logistics center in southern Sweden, an investment estimated at between 260 million and 280 million euros.
Swedish food retailer Axfood AB on Friday reported higher second-quarter profit, as investments in logistics began to pay off and sales grew at its discount and recently acquired hypermarket chains.