FIEGE and Digitec Galaxus on common path

Digitec Galaxus AG could easily be described as the world’s largest turtle. The e-commerce giant with its distinctive turtle logo is the undisputed market leader in Switzerland. The complete galaxy of stores is only a click away on the two online platforms, digitec and Galaxus. Their assortment covers everything from IT and electronics to household appliances, toys, and fashion, to interior and food. The company has reaped multiple awards for its flourishing business model, including the Swiss E-Commerce Award.

The Covid-19 pandemic gave yet another boost to buying online. “The order numbers went through the roof. Our business has grown enormously. For this reason, we had leased an owner-operated temporary storage facility in Nebikon, Lucerne”, recalls Michael Stolle, Chief Operation Officer (COO) of Digitec Galaxus AG. The term of the lease was limited to one year. The company therefore started searching at the same time for a long-term warehouse option with optimal transport accessibility. In Switzerland, those types of facilities are few and far between – and therefore, in great demand. “We were extremely pleased when Fiege made us an offer at just the right time to provide around 8,500 square metres of storage space in Oftringen, a mere 15 minutes’ drive away”, Stolle emphasised.

From contract negotiations to the go-live a few weeks ago, the collaboration went like clockwork. “Fiege , just like us, is a solution-minded, agile enterprise that greatly values good customer service. From the management all the way to the operations, the mindset was a great fit and we have developed a solid partnership”, is how the COO summarised the past months.

The relocation to the Fiege warehouse in Oftringen has in the meantime been completed and operations have been up and running since early March. On 12,000 pallet spaces, some 50,000 maxi-sized products are housed in the high-bay store for Digitec Galaxus – products that are simply too big to be shipped by parcel. This includes items like sofas, A/C units, wheelbarrows, and braziers. “Fiege handles incoming goods, inbound and outbound storage, readying for shipment as well as the hand-over to the postal service’s forwarders for us”, Stolle explains.

The fact that the project launched so well also has a lot to do with the fact that Fiege took over multiple employees from Nebikon. “Their experience and knowledge of the company’s ins and outs thus remained available to us even after outsourcing”, is how the COO details the advantages. For now, Oftringen will operate with Digitec Galaxus software systems. The location’s multi-use structure allows co-workers to provide additional support for alternative customer processes. A typical win/win situation, as Christoph Mayer, Fiege Branch Manager in Oftringen confirms: “Our new colleagues have been perfectly integrated and are an indispensable asset during the induction process.”

For the near future, the e-tailer, who has been active in the German market for a good four years now, is looking to become even more international. Moreover, as an alternative to Amazon, the goal is to become a marketplace to be reckoned with outside of Switzerland which allows third-party vendors to sell their products online in their own name. Mayer was happy that Fiege would be able to accompany this development. “It is our goal to deliver a perfect performance and establish a long-term strategic partnership with Digitec Galaxus”, says the Branch Manager.