15.12.2021 | Hamburg
The international retail and services Group is modernizing and expanding the logistics infrastructure at the traditional Upper Franconian location of the Baur Group. This is the result of a joint shareholders’ decision between the Otto Group and the Friedrich Baur Foundation. The plan for the coming years is to invest around 150 million euros on the expansion and the technological development of the Group location in Altenkunstadt as well as to secure job opportunities in the region and in Germany for the long term.
The Otto Group is thereby upholding its proven track record and its distinguished operative excellence in logistics in Altenkunstadt within the Group. The Friedrich Baur Foundation is functioning as a business partner behind the visionary expansion plans and it unanimously welcomes the major investment at the Upper Franconian headquarters of the Baur Group. In order to continue performing successfully in the future in an exceptionally dynamic and highly competitive market environment, investment in the latest technology will take place as part of a new logistics concept. Envisaged by the joint decision between the Executive Board of the Otto Group and the Advisory Board of the Friedrich Baur Foundation is an expansion of a 16,300 square meter (176,000 square foot), fully automated shuttle warehouse at the existing location, which will be optimally embedded into the existing structure. This will result in securing long-term job opportunities for around a thousand employees in the region.
“We want to inspire our customers – and a decisive factor in this is providing a high-quality supplier service with superior competitiveness, such as next-day delivery. For that reason, the Otto Group is investing responsibly and sustainably in the logistics capabilities of its Group companies, in order to secure long-term success on the market,” says Kay Schiebur, Executive Board Member of the Otto Group. “One of the largest and most modern fulfillment centers in Europe is taking shape in Altenkunstadt.” The location will become a flagship project of German e-commerce and in the Otto Group.”
“Both our partners, the Otto Group and the Friedrich Baur Foundation, have set the course for the major investment of the past decade at the traditional location in Altenkunstadt,” adds Stephan Elsner, CEO of the Baur Group. “This is a strong signal for Germany as a logistics location and for the Upper Main River region in particular. We are thus securely positioned for the coming years and are eager to fulfill this role in the Group-wide logistics network of the Otto Group.”
“Speaking on behalf of the Friedrich Baur Foundation, I am pleased that the Otto Group has chosen the location of Altenkunstadt and that Baur will cover the majority of the investments. This was a very good strategic decision,” added Dr. von Waldenfels, Chair of the Board of Trustees.
On completion of the official approval process, the construction work, which will principally be done by companies from the region, is set to begin in the first quarter of 2022. The newly constructed facility – with a length of 216 meters (707 feet), a width of 74.5 meters (244 feet), and a height of 24 meters (78 feet) – is scheduled to go into operation in February 2024. Alongside the expansion of noise-protection measures for nearby residents, the structural expansion and modernization of the logistics infrastructure underscores the Otto Group’s consistently pursued goal of climate-neutrality by 2030.
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Founded in Germany in 1949, today the Otto Group is a globally active retail and services group with around 52,000 employees in 30 major company groups and does business in over 30 countries in Europe, North and South America, and Asia. Its business activities are grouped into three segments: Multichannel Retail, Financial Services, and Service. In the 2020/21 financial year (to 28 February), the Otto Group generated revenues of 15.6 billion euros. With online revenues of approximately 9.9 billion euros, the Otto Group is one of the world’s largest online retailers. The Group’s particular strength is its broad market presence and differentiated product and service offers to diverse customer target groups in almost all of the world’s relevant economic regions. Numerous strategic partnerships and joint ventures provide the Otto Group with excellent opportunities to transfer know-how and leverage areas of synergy potential. Group companies demonstrate a high degree of corporate responsibility and willingness to collaborate with one another; at the same time this guarantees flexibility, customer proximity and optimum target-group appeal in their respective national markets.
For further information on the Otto Group, visit www.ottogroup.com