RedMart opens new fulfillment centre as grocery delivery demand rise

The 350,000 sq ft West Fulfillment Centre is worth close to S$100m.

Singapore’s largest online Grocer, RedMart opened a new fulfillment centre in light of the growing delivery demand for grocery needs.

The 350,000 sq ft West Fulfillment Centre (FC), which is equipped with two advanced automation technology, cost an estimated S$100m.

“The introduction of automated systems in our new fulfilment centre was timed to meet the anticipated demand for online groceries in Singapore in the next few years, but that has been realised sooner than expected as a result of the pandemic,” Gerald Glauerdt, RedMart’s Chief Logistics Officer, said.

“This investment is sure to keep RedMart at the forefront of Singapore’s grocery sector for years to come.”

This comes as Singapore’s grocery sector saw a three-fold growth to S$500m in 2020 from S$130m in 2017, RedMart said, citing IGD data.  

RedMart expects this growth to be sustained in the next ten years as the world adapts a hybrid setup following the pandemic.

The online grocer, owned by Lazada, said it is primed to deliver 25,000 orders daily by 2025.

RedMart deployed the goods to person picking, which serves as the backbone of the West FC in sorting, storing, and retrieving over 48,000 products to fulfill customer orders on a daily basis.

It also used pick to light, which automates the selection and sorting of frozen, cold and fresh produce.