KNAPP automates fashion logistics for the largest omnichannel retailer in Brazil

Fashion omnichannel retailer Lojas Renner partnered with KNAPP to automate its new distribution center in Cabreúva, São Paulo, scheduled to go live in 2022. The solution for hanging and flat-packed goods represents another step towards the company’s expansion in the South American market.

Lojas Renner’s new distribution center (DC) will boost the company’s logistics efficiency, digital transformation and multichannel integration services. It will practically halve the time needed to supply the company’s stores across the country and accelerate the delivery of products purchased by consumers through digital channels. In addition, it will provide important support to international operations, opening up space at the Santa Catarina DC to streamline the shipment of goods to Uruguay and Argentina, where the Renner brand has stores as well.

Lojas Renner’s direct investment in the project amounts to 146 million Euro. The largest part – around 88,4 million – is being invested in technology and equipment acquired from the Austria-based KNAPP group. “The gains in extra warehousing space and the innovative processes will increase the quality of the service we provide to our customers, bringing us even closer to them. The technology will also be essential for the company’s growth strategy towards a sustainable development of our fashion and lifestyle business”, says Pedro Pereia, Supply Chain Director at Lojas Renner.

Integrated solution for hanging and flat-packed goods

Up to 100,000 items will leave the warehouse per hour in the future. An integrated overall design for hanging and flat-packed goods will make this possible. “The combination of automation technology for hanging and flat-packed goods, the focus on a complete integrated solution and the vast experience in the fashion sector allows us to offer extraordinary solutions to our customers”, highlights Johannes Holas, Vice President of Business Unit Fashion at the KNAPP AG. “As a central element of the solution, the pocket sorter handles different flows of goods efficiently, for example, flat-packed goods coming from the automated shuttle system as well as hanging goods”, Mr. Holas explains.

Flat-packed goods are stored in the OSR Shuttle Evo and sorted efficiently and ergonomically through the Pick-it-Easy goods-to-person work stations. An overhead conveyor system from Dürkopp Fördertechnik, a subsidiary of KNAPP’s, takes care of hanging goods storage and sorting. In the first expansion phase, 8.3 million flat-packed items or 8.1 million hanging items can be stored in a highly compact way.

According to Mr. Pereira, having a partner like KNAPP has been extremely important for the success of this endeavor. “We implemented a complex project, which involved overcoming a series of challenges, during a pandemic. Despite the circumstances, KNAPP continued to work with us to develop a solution that would meet our needs, using the most modern automation technology on the market. This collaborative spirit was critical to overcoming the challenges we’ve encountered so far. We are very confident that we will be successful when we go live and throughout 2022”, he says.

About Lojas Renner SA

Founded in 1965, Lojas Renner SA was the first Brazilian corporation with 100 % of its shares traded on the stock exchange, and is listed on the Novo Mercado segment of B3, the highest level of corporate governance. Lojas Renner’s fashion and lifestyle business comprises the following brands: Renner, which offers clothes and accessories for all styles; Camicado, a company in the home and decoration segment; Youcom, which specializes in youth fashion; Ashua Curve & Plus Size, which offers fashion in sizes 46 to 54; and Repassa, a clothing, footwear and accessories resale platform. Currently, Lojas Renner boasts more than 600 stores covering all segments. The company also partnered with Realize CFI, which supports their retail activity by offering and managing financial products. Besides being present in Brazil with all its brands, Lojas Renner is also active in other South American countries. In the course of their internationalization process, they opened department stores in Uruguay in 2017 and in Argentina in 2019.