Europe’s Largest Logistics Center Lands in Russia

By Ioana Moldovan

South Gate Industrial Park

Moscow—Auchan Retail Russia, a subsidiary of Auchan Retail, has recently signed an agreement for the development of a 1,485-square-foot warehouse and logistics center in the Domodedovo district of Moscow. Local warehouse developer Radius Group has been tapped as the company’s partner for the construction of the $95 million project, which is expected to create more than 750 jobs upon completion.

Development plans call for the build-out of an energy-efficient and environment-friendly facility with the help of advanced technologies. The final project will have the capacity to handle the loading and unloading of more than 230 trailers simultaneously and will serve more than 50 regional Auchan stores, marking the company’s major expansion in Central Russia.

“During the first stage we plan to build infrastructure for a warehousing center that will allow us to expand it in the future,” Oleg Alkhamov, CEO for hypermarkets at Auchan Retail Russia, said in prepared remarks. “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.”

The center will be located on a dedicated land plot at the Radius Group’s South Gate Industrial Park, a 355-acre project situated at the intersection of two major federal highways, M4 and A107 Moscow Ring Road. The area’s infrastructure and transport accessibility will help optimize construction and maintenance costs for the large-scale building. South Gate is already home to distribution centers of major retailers including Leroy Merlin and Decathlon.

“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,” said Radius Group Managing Director David Simons.

Image courtesy of Radius Group