Auchan Retail Russia and Radius Group to Build One of Europe's Largest Logistics Centres

MOSCOW, October 12, 2016 /PRNewswire/ --

New distribution centre will support Auchan Retail Russia's growth in Central Russia while keeping prices low for customers by making logistics more efficient. 

Auchan Retail Russia announces that it has signed an agreement to build a major new warehousing and logistics centre in the Domodedovo district of Moscow region. The facility will have a total area of more than 138,000 sq m, making it the biggest single-user building in Europe. The developer for the project will be Radius Group, a leading developer of class-A warehouse and industrial real estate in Russia. Auchan will invest about RUB 6 billion in the project, which will create more than 750 new jobs.

The new centre will be constructed using advanced technologies and will be not only the largest facility of its kind but also one of the most energy efficient and environment friendly buildings in Russia. The facility has a planned capacity to handle loading and unloading of more than 230 trailers simultaneously, and will service more than 50 Auchan stores in the region. The centre will be located on a dedicated land plot at South Gate Industrial Park area, having developed infrastructure and excellent transport accessibility which will help optimise construction and maintenance costs for this large-scale building. South Gate Industrial Park, with total area of 144-ha developed by Radius Group, is already a home to distribution centres of major retailers including Leroy Merlin and Decathlon.

"During the first stage we plan to build infrastructure for a warehousing centre that will allow us to expand it in the future," said Oleg Alkhamov, CEO for hypermarkets at Auchan Retail Russia. "This is a major investment project that we intend to implement in Moscow region. Russia has always had and continues to have enormous potential for our future growth, and logistics is a key element in successful retailing."

David Simons, Managing Director of Radius Group, said: "This agreement once again illustrates that major retailers are continuing to invest in logistics as a key competitive advantage despite challenging economic circumstances and the market situation in Russia. Radius Group is delighted to partner with Auchan Retail Russia on this project, which will be developed and constructed with the use of Radius InSite's suite of 3D and other digital management tools, providing unparalleled control and transparency over the design process and control on budget and schedule."