Michelle Mooney visited Auchan Retail’s Luxembourg fulfilment facility and witnessed first-hand how robotic automation is enhancing the speed of deliveries to customers
At Auchan Retail Luxembourg’s latest fulfilment centre in Dudelange, a partnership with warehouse automation solutions provider Exotec is setting new standards for efficiency and scalability in retail logistics. The implementation of Exotec’s Skypod system – an advanced automated storage and retrieval solution designed to enhance warehouse efficiency through the use of autonomous mobile robots (AMRs) – marks a significant milestone not only for Auchan’s operational strategy but also for Luxembourg’s retail sector as a whole. This move has positioned Auchan Retail Luxembourg as the first retailer in the country to adopt the Skypod system, further solidifying its leading market position.
With a shared emphasis on growth, adaptability and technological innovation, this collaboration aims to meet the shifting demands of modern supply chain operations and set a benchmark for future industry standards. According to Grand View Research, investments in automated warehouse systems are projected to grow to US$51.12bn (£39.29bn) by 2030, highlighting the urgency for retailers to modernise their operations. For Nicolas Gueuzurian, marketing and e-commerce director at Auchan Retail Luxembourg, the project signifies more than a technological upgrade – it involves an intricate adaptation to the specific characteristics of a new operational landscape.
BOT BYTE: Four million commercial warehouse robots are to be installed in more than 50,000 warehouses by 2025. Source: G2
“This was the first time we’ve worked with Exotec and deployed such an advanced system in Luxembourg,” he reflects. One of the most pressing challenges, Gueuzurian explains, was navigating the country’s unique regulatory framework, which differs from that of its neighbouring nations. “It wasn’t about the technology itself but understanding the local regulations – from fire safety standards to employee welfare laws.”
Although Exotec’s Skypod system is purpose-built for adaptability and can be tailored to various global markets, understanding local regulations is a crucial step in the planning phase of any partnership. This consideration is particularly essential in Luxembourg, a relatively small yet highly regulated market with its own unique operational hurdles. Such challenges demand careful navigation in order to ensure compliance without compromising on technological effectiveness.
“Our primary goal in integrating Exotec’s technology was to enhance our logistics operations while retaining our skilled workforce. Our employees are highly valued, and automation should serve to empower them, not replace them.” – Nicolas Gueuzurian, marketing and e-commerce director, Auchan Retail Luxembourg
Despite these initial hurdles, Gueuzurian emphasises that the collaboration with Exotec has been exceptionally positive. “It’s been a smooth collaboration,” he says. “Exotec has an agile, responsive company culture that aligns well with Auchan’s need for flexibility and quick adaptation in its operations.” This alignment has laid the groundwork for a productive and long-term partnership that both parties believe will continue to flourish.
The Skypod system was selected specifically for its capacity to scale up operations with minimal disruption, a critical factor in fast-paced retail environments. Exotec has installed 37 Skypod robots at Auchan’s Dudelange warehouse, which autonomously and efficiently manoeuvre in all directions to extract products from some 15,300 bins and deliver them to one of three picking stations. This automation has significantly improved the order processing workflow, making employees’ tasks lighter and more pleasant.
BOT BYTE: Exotec has installed 37 robots in the facility to automate order processing
One of the standout features of Exotec’s solution is its modular design, which enables the system to be scaled up without significant operational downtime. Sebastien Beyaert, Exotec’s deployment director for Western Europe, elaborates on the scalability of the system: “We can add additional robots and extend the racks with minimal disruption to ongoing operations. Whether it’s adding 10, 20 or more rack locations, the system scales quickly and efficiently,” he says “Our technology is engineered to be modular, so as a business’ needs grow, the system can expand almost instantaneously.”
For Auchan, this level of flexibility was a crucial consideration. Gueuzurian notes that the company’s fulfilment centre needed to be future-proof, accommodating both current and potential future needs. “We wanted to ensure that we could grow alongside the technology,” he says. “Exotec’s system provides that assurance. We’re not tied down to a static configuration – our system can evolve as our business expands.”
The AMRs can move in three dimensions, navigating vertically and horizontally within high-density storage racks that can reach heights of up to 12m (39ft), maximising vertical space utilisation. The modular nature of the Skypod system also facilitates the swift deployment of additional robots to boost throughput as needed.
As Beyaert highlights, “We can enhance performance by incorporating more robots almost instantaneously. That’s a major advantage for clients who need to adjust to fluctuating demand quickly.” The system has allowed Auchan to process up to 915 orders per hour, a significant asset given the growing demand for rapid e-commerce fulfilment, where customers often expect delivery within 24 hours.
In agreement
The synergy between Auchan and Exotec extends beyond shared business objectives to a mutual commitment to innovation and customer-centric strategies. Both companies leverage technology not just to improve efficiency but also to enhance the human experience within logistics. Automation, while often viewed as a potential threat to employment, is positioned at Auchan as a complementary tool to support staff. Gueuzurian underscores this commitment: “Our primary goal in integrating Exotec’s technology was to enhance our logistics operations while retaining our skilled workforce. Our employees are highly valued, and automation should serve to empower them, not replace them.”
This approach aligns with the operational philosophy at Auchan’s Luxembourg facility, where employees are encouraged to engage in higher-value activities while the Skypod system manages repetitive tasks. “It’s a balanced system,” Gueuzurian explains. “The Skypods do the heavy lifting, and our staff can focus on optimising workflows and customer service.” The collaborative environment between human staff and robotics has been further reinforced by Exotec’s user-friendly design. As Beyaert notes, “The system is straightforward to learn and use, so training periods are short, allowing for minimal disruption. Operators can easily switch between tasks, which streamlines the overall workflow.”
Since the Skypod system’s installation, the number of products available in the Auchan Drive has increased by 17%, bringing the total to more than 13,000 items. This expansion has also supported the opening of two additional branches in Luxembourg, further enhancing the retailer’s ability to serve its market.
BOT BYTE: In total, 160,000 orders are prepared annually from the Dudelange warehouse, which are delivered via distribution points
As Auchan’s operations expand, so too will its reliance on the scalable capabilities of the Skypod system. The retailer has plans not just for its Dudelange site but across its European and global network. Exotec, on its part, is eyeing new markets, including the Middle East, Asia, and Africa, while recognising potential in the US market. “The USA presents a huge opportunity for us due to the substantial demand for warehouse automation,” Beyaert says. “We are also expanding in key European markets such as Poland, Switzerland and the UK, where demand for advanced fulfilment solutions continues to grow.”
Gueuzurian views technology as an essential asset in remaining competitive in today’s fast paced retail environment. “The ability to scale and adapt rapidly is crucial. The Skypod solution gives us that capability, enabling us to stay agile and responsive to market changes.” The partnership between Auchan and Exotec thus serves as a compelling example of how strategic automation can optimise logistics operations while building a scalable, future-proof growth model.
Both companies remain committed to pushing the limits of what’s possible in retail logistics, with a strong emphasis on innovation, efficiency and value creation for customers. As logistics continues to evolve, Auchan and Exotec stand well-positioned to lead with solutions designed to meet the demands of tomorrow’s retail environment.
