The Board of Directors of Clas Ohlson has decided to invest approximately 400–450 million kronor in its distribution center in Insjön to ensure the capacity needed for continued expansion. The existing distribution center will be upgraded with a ”state-of-the-art automation solution” and given the capacity to handle larger volumes for both stores and e-commerce, the company states in a press release.
– We are very pleased to have reached this milestone. Expanding and streamlining the facility in Insjön is the best solution for everyone at and around Clas Ohlson. It was in Insjön that it all began over a hundred years ago, and we’ve worked hard to find a way to grow even stronger here in the future. With a modernized and competitive distribution center, we’ll be able to provide our customers with even better and faster service, we will remain a long-term and significant employer in Insjön, and we will create opportunities for further value creation for our shareholders,” says Kristofer Tonström, President and CEO of Clas Ohlson.
Overall, cargo-handling capacity will increase by approximately 15–20 percent. In addition, there is potential to expand operations further as needed, including through increased storage capacity.
“We have a very well-maintained facility that will now become even better. In addition to efficiency gains from automated workflows at our distribution center, we’ll be able to increase the load factor of our shipments and also manage the flow of goods more efficiently in our stores. We’ve also ensured that we can expand the high-bay warehouse as needed, which gives us great peace of mind as we plan for the future,” says Stefan Lindwall, Director of Logistics at Clas Ohlson.
The procurement of construction and automation partners is underway, and work is expected to begin in March 2026, with completion scheduled for the second half of 2027. It is estimated that the renovation will not have a negative impact on earnings during the project period. With increased capacity to handle larger product volumes at a lower cost, the investment is expected to pay for itself in approximately four years after automation is fully implemented. The investment cost is expected to be charged primarily to the 2026/27 fiscal year. Financing will be provided through cash and cash equivalents.
