Fashion giant Lojas Renner is setting new trends in logistics automation

The Latin American fashion industry is experiencing a massive boom. This trend, however, does not come without logistical challenges that require new and innovative solutions. Brazil’s largest e-commerce retailer Lojas Renner is banking on a high-tech automation solution from KNAPP for their fashion logistics in their new distribution center. The comprehensive and intelligent design makes sure that all requirements are met. It is the largest automation project in Latin America. The project is still under construction, but will be put into operation step-by-step by the end of this year.

OSR shuttle system with goods-to-person workstations
Pocket sorter and hanging goods solution
Automated distribution center for Lojas Renner, South America, from aboven, von oben

Lojas Renner is not only setting fashion, but also automation trends in their warehouse

In Latin America – specifically in Chile, Brazil and Mexico – e-commerce retailers are working meticulously on intelligently automating their fashion logistics. One of them is Lojas Renner, the largest fashion retail chain in Brazil. Founded in 1912 as a retail company, Lojas Renner originally manufactured clothing made of wool. Over the past decades, the company has grown to become a fashion giant that currently runs 530 stores in Brazil, Argentina and Uruguay. In 2010, they entered the online fashion business. It was not long before their logistics needed a boost to continue to ensure top performance and keep their customers satisfied.

We are bringing state-of-the-art technology to fashion retail. All the big players are investing in technology and are opting for us as a partner for their installations. For our customers, it’s a race for excellence and to wow their customers. We are here to assist them.

Rodrigo Santoro
Business Development Director, KNAPP Sudamérica
The OSR Shuttle™ Evo system in Lojas Renner’s distribution center

Speed, reliability and cost are the most important factors when it comes to online orders as they influence consumers’ shopping experience and loyalty to the brand. That is why the new distribution center will be vital for our success with customers and to generate strong and sustainable growth.

Pedro Pereira
Logistics and Supply Chain Officer, Lojas Renner

Striking a balance between process optimization and customer satisfaction

Fashion retail in particular is an extremely fast-paced business due to seasonality and ever-changing trends. Additionally, consumers expect fashion items to be readily available with short delivery times and easy return options. Customer satisfaction has top priority throughout the whole shopping process.

Due to the constantly changing product range and the vast variety of products being offered, processes in fashion logistics must be adapted and optimized accordingly so that the customer’s needs are fulfilled in the best possible way. Lojas Renner therefore decided to implement a sophisticated automation solution for their omnichannel warehouse in Brazil in collaboration with value chain tech partner KNAPP.

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A “plus-size” automation solution

Lojas Renner endeavors to install an end-to-end omnichannel solution, from goods-in to shipping. Their new automated distribution center located near São Paulo will not only supply all stores in Brazil and Uruguay, but also handle the entire online business. This requires a “plus-size” automation solution consisting of intelligently integrated elements that run like clockwork. The integrated all-in-one concept for this fashion logistics solution for hanging and flat-packed goods comprises the following elements:

  • KNAPP’s shuttle system OSR Shuttle™ Evo for flat-packed goods: A central system comprising 14 rack line systems and 27 levels for storing and retrieving flat-packed goods
  • Efficient and flexible pocket sorter solution for hanging goods: This solution features 7 modules, with a throughput of 55,000 items per hour, to efficiently handle the flows of various types of goods
  • 28 Pick-it-Easy work stations: for ergonomic and efficient goods-to-person picking
The pocket sorter system in Lojas Renner’s distribution center

Increased efficiency + more benefits = added value

Project implementation started in 2021; this year, the warehouse is scheduled to go into operation step-by-step. Once finished, the distribution center will ensure maximum efficiency and productivity as well as optimal processes throughout the entire flow of goods, which will translate into real added value for Lojas Renner:

Delivery to stores will be twice as fast

Significantly faster delivery times for customers and improved customer experience

100,000 items per hour shipped from the warehouse

Storage capacity for 8.3 million items in the OSR Shuttle™ Evo and 8.1 million items in the pocket sorter systems

Total warehousing space of 163,000 m2 (1,754,517.40 ft2)

Geared towards the future, sustainable and green

The automation solution is flexible in design to to meet current demands while still leaving room for further growth. The system in the Lojas Renner distribution center was implemented to be able to meet growth targets and expected throughput requirements through 2035. Lojas Renner also has big ambitions when it comes to the issue of sustainability: Lojas Renner is taking appropriate sustainability measures to work towards achieving the Leadership in Energy and Environmental Design (LEED) certification. For instance, 70,000 native trees will be planted on and around the warehouse premises as ecological compensation for building the warehouse.

Shared values and goals

What connects us with Lojas Renner is not only our shared language or technical expertise, but also our shared values. Lojas Renner see themselves as an innovative and modern company that is passionate about their business. Similarly, we are driven by innovative power and passion to support our customers, which is why they can rely on us as a strong partner. At the beginning of every project, we get to know the customer so we can understand their business. Only then can we address certain issues in the value chain and optimize their processes with the right technologies.

Along with the technical expertise and international experience, both our companies have strong similarities in terms of values and corporate culture, which is why KNAPP was the right partner for us to implement such a huge, complex project.

Pedro Pereira
Logistics and Supply Chain Officer, Lojas Renner

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