Retail has been picking up the pace on adopting automation from the introduction of basic self check-out tills to the use of robots in supply chains. Now tight labor markets, rising wages and consumer spending pressure is forcing the industry to go further
With goods packed more densely up to its roof, the new warehouse, which spans the size of over 15 football fields, reduces the need for extra sites - and workers - leading in time to a lower cost base.
Now tight labour markets, rising wages and consumer spending pressure are forcing the industry to go further. Mark Shirley, head of logistics at Irish-founded Primark, said the 25 million euros investment in the Roosendaal site's automation would deliver an 8 million euros per year benefit from year four, in addition to savings from not having to lease another warehouse.
And crucially, the use of autonomous vehicles means the company no longer has to compete in the extremely tight Dutch labour market, a challenge felt in many advanced economies.
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