OmniStore Turns Grocery Stores into Small Fulfillment Centers

Tuesday, May 14, 2019

Intralogistics specialist TGW and the shop-fitting professionals from 'umdasch The Store Makers' have developed an innovative store and logistics concept for food retailing called OmniStore, an omnichannel model that integrates logistics processes. OmniStore combines the strengths of stationary retail with the benefits of e-commerce, but it does so at local grocery stores. At a trade forum organized by CASH trade magazine in Fuschl, Austria (24 to 26 April 2019), OmniStore was introduced to a large specialist audience for the first time where it was met with great approval.
The supply chain in food retailing has consistently been optimized over decades to provide best possible service at lowest possible costs. This was feasible as long as companies were able to fulfill changing consumer needs with store models that did not fundamentally impact the material flow. However, due to the rapid growth of online commerce, this approach is now increasingly reaching its limits. Selling food via the Internet follows other rules than stationary distribution, thereby placing new and different demands on supply chains.
The best of both worlds
Families and younger customer groups in particular are increasingly buying food online either from at home or on the go via their smartphones. For example, in Germany the increasing market acceptance of the food segment in 2017 brought online retailers sales of 1.13 billion euros, which is an increase of 21.3 percent over the previous year (2016: 932 million). These statistics were published by the German Bundesverband E-Commerce und Versandhandel e.V.  (German E-Commerce and Mail Order Association). Many retailers are therefore investing massively in online and delivery services. However, order picking for each individual customer and “last mile delivery” are expensive and therefore difficult to realize profitably. One thing is certain, though: Stationary trading is not about to disappear. Customers continue to place value on their local shopping experiences. They want to see the fresh food they’re about to buy, smell it, and be able to ask for customer service. Compared to pure online retailers, stationary retailers can set themselves apart through promptness, flexibility, and convenience. So what will tomorrow's grocery stores look like? TGW and umdasch offer an answer: with OmniStore.
Local fulfillment centers
“OmniStore uses existing stores and transforms them into small local fulfillment centers. This means that, in addition to the store itself, there is a separate picking area where groceries are efficiently and automatically stored and customer orders are assembled, perfect for online grocery orders that are placed and then later picked up by customers. Groceries sold in the store focus on attractiveness and emotionality – with a strong emphasis on fresh and regional products,” explains Christoph Wolkerstorfer, CSO of the TGW Logistics Group. Businesses benefit from fast and cost-efficient Omnichannel Order Fulfillment, but within their existing store branch network. OmniStore can be realized starting from a store size of 1,000 m² – with the same number of operators as before. 
Increase picking efficiency
Customers have the opportunity to do their daily shopping in a grocery store as usual, choose products at the digital order terminal, they can get help from a sales person or enjoy a cup of coffee in the integrated restaurant. Of course, they can also conveniently place orders for goods online at home and then pick up their purchases around the clock at so-called pick-up points at a grocery store of their choice. From the simple picking-up of online orders to quick impromptu purchases inside the store, many different customer journeys can be covered. OmniStore provides retailers with increased picking efficiency up to a factor of four.
About TGW Logistics Group
TGW Logistics Group is a worldwide leading provider of intralogistics solutions. For 50 years, this Austrian specialist has been providing automated systems for international customers – from A as in Adidas to Z as in Zalando. As a systems integrator, TGW provides planning, production, and implementation of complex logistics centers – from mechatronics to robotics and from control systems to software solutions.
With approximately 3,300 employees, TGW Logistics Group has offices in Europe, China, and in the U.S.A. In the 2017/2018 business year, the company achieved a total turnover of € 713 million.
About umdasch The Store Makers
umdasch The Store Makers is one of the leading shopfitting concerns in Europe, with a staff of some 1,500 employees. The corporate headquarters are in Amstetten, Austria. With some 20 branch locations in Europe and the Middle East, umdasch and its four operative divisions realise over 7,000 shopfitting projects and 200 general contracting projects every year. Together with its sister concern Doka, which has over 180 logistics and sales branches in 70 countries, the concern has been owned by the Umdasch family for over 150 years and is currently in the hands of the fourth generation.
Andrew Lockhart
Vice President of Sales
T: +1 1231 798 4547
M: +1 616-414-2633
Alexander Tahedl
Marketing & Communications Specialist
T: +43.(0)50-486-2267
M: +43.(0)664-88459713
Martin Kirchmayr
Director Marketing & Communications
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TGW Systems

Andrew Lockhart

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