In retail networks’ ranking by owned logistic areas, Kaufland is followed by Lidl (110-120,000 square meters) and Carrefour (over 60,000 square meters), according to data ZF got from companies and market players.
By comparison, the largest logistic companies by operate warehousing space hold areas of below 100,000 square meters. H. Essers Logistics, the leader of the ranking, holds a total warehousing area of 83,000 square meters in 2014.
The logistic warehouses used by retailers are either owned (like in the case of Kaufland or Lidl, for instance), or rented (like in the case of Carrefour). There are also retailers, such as Cora and Selgros, which have outsourced these services and work with logistic companies from which they rent large areas. However, logistic companies provide other complementary services as well, such as product packaging and transport.
“Retailers with the largest food store networks also own the largest portfolios of logistic spaces. German retailers have as a strategy holding most logistic spaces as assets in their portfolios and operating them,” says Marian Orzu, head of industrial department at CBRE Romania real estate consultancy.
On the other hand, the others focus on renting logistic spaces and most of the times outsource logistic services to specialized companies.
Kaufland, for instance, owns two warehouses. “The first warehouse is located in Ploiesti, Prahova county, and started being used in October 2005,” say the representatives of the company with revenue of around EUR1.6 billion in 2013, according to ZF estimates.
The second logistic center, opened in September 2011, is located in Turda, Cluj county. “Freight transport from central warehouses is operated by specialized companies,” say the representatives of Kaufland.
The German chain first built its warehouse of Romania, which it subsequently expanded, and then started building its stores, says Gabriel Chimisliu, a vice-president at real estate consultancy The Advisers Knight Frank.
“Kaufland was the only chain that opted for such a strategy,” he added.
At the opposite end, networks such as Cora or Selgros have contracts with specialized logistic companies. “We have two logistic platforms, Petresti and Pantelimon, with a total area of 15,100 square meters. We also work with logistic companies (FM Logistic) as we prefer to focus on our core activity and we also want to profit from the experience and competence of the logistics provider,” says George Velicu, in charge with logistics at Cora Romania.
Selgros works with two logistic companies, thus outsourcing its non-core business services. The chain also operates two platforms through three logistic warehouses. “Two of them are located in Bucharest and one in Cluj. The total area stands at 4,000 square meters”. Selgros is the modern retail network with the smallest own logistic area, according to ZF data.
However, most networks prefer having their own warehouses and outsourcing only transport services since retailers do not have truck fleets.
(English version by Catalina Apostoiu)