STOCKHOLM – Swedish retailer Clas Ohlson said on Tuesday it will invest 400-450 million Swedish crowns ($38-43 million) to upgrade its main distribution centre, betting on automation to fuel long-term growth in both store and online sales.
The board-approved investment will modernise the company’s logistics hub in Insjön, Dalarna, the town where it was founded over a century ago. The project aims to increase goods handling capacity by 15-20% through a state-of-the-art automation solution.
“We have worked intensively to find a way to grow stronger here also in the future,” President and CEO Kristofer Tonström said in a statement. “With an updated and competitive distribution centre, we will be able to provide our customers with even better and faster service.”
The company, which began a review of its logistics in spring 2024, decided that expanding the existing Insjön site was the optimal solution. The upgrade will also allow for a higher fill rate in transports and more efficient goods handling in its stores.
Stefan Lindwall, Director of Logistics, said the modernised facility provides “great security in our future planning,” noting the possibility to further expand the warehouse if needed.
Work on the distribution centre is scheduled to begin in March 2026, with completion expected in the second half of 2027. The company said the rebuild is not expected to negatively impact earnings during the project period.
Clas Ohlson anticipates a pay-back time of approximately four years after the new automation is fully operational, citing increased capacity at a lower cost. The investment will be financed through existing cash and charged mainly to the 2026/27 financial year.
($1 = 10.4924 Swedish crowns)