GS Retail Launches 'Prime Center' Automated Logistics Center with 30 Billion KRW Investment

Capital Region Western Hub Center ... Same-Day Delivery of 15,000 Orders for Over 20,000 Items

[Asia Economy Reporter Jo In-kyung] GS Retail announced on the 30th that it has opened a new automated logistics center called 'Prime Center (photo)' in Gimpo-si, Gyeonggi-do, which integrates advanced technologies to strengthen its digital commerce competitiveness. As GS Retail's third digital commerce-dedicated logistics center, this facility serves as a logistics hub overseeing the western metropolitan area including Seoul and Gyeonggi Province, and is responsible for same-day delivery services for GS Retail's online malls GS Fresh Mall and Dalli Salda.

The Prime Center is a large-scale logistics center with a total floor area of 16,528㎡. It operates about 20,000 SKUs for same-day delivery services, which is a 120% increase compared to the number of SKUs handled by existing logistics centers. The daily order processing capacity for same-day delivery at a single center is expanded up to 15,000 orders, an increase of up to 200%. This is the result of maximizing productivity by installing automated equipment at key stages throughout the logistics process.

The core automated facilities include an 'automated inventory storage warehouse' that autonomously manages product intake, storage, and shipment; the 'GTP (Goods to Person) system,' where products travel on conveyor belts to find workers automatically; and an 'automated outbound storage warehouse' that automatically sorts outbound products according to vehicle delivery order. GS Retail explained, "We have invested approximately 30 billion KRW to establish automated facilities within the Prime Center."

Starting with the Prime Center, GS Retail plans to secure more than 12 additional digital commerce-dedicated logistics centers within the next five years. Based on this, the company aims to rapidly expand same-day and dawn delivery services nationwide. Additionally, GS Retail is accelerating preparations for full-scale fulfillment business by establishing a fulfillment organization staffed with logistics experts under the digital commerce B/U.

Previously, GS Retail revealed a blueprint to grow its digital commerce business scale to 5.8 trillion KRW by 2025. To achieve this, the company is investing approximately 270 billion KRW in expanding digital commerce-dedicated logistics centers, building IT infrastructure, and recruiting a large number of specialized talents, thereby strengthening core capabilities and securing new growth momentum.

Park Young-hoon, Vice President and Head of GS Retail's Digital Commerce B/U, said, "Thanks to the explosive growth of the digital commerce market, the maximum operating rate of the existing digital commerce-dedicated logistics centers, initially expected by 2023, has already approached 90%, prompting us to rapidly proceed with the construction of the Prime Center. Beyond same-day delivery, we will secure quick commerce capabilities linked with about 16,000 offline platforms such as GS25 and GS The Fresh, aiming to gain an advantage in the delivery speed competition."

This content was produced with the assistance of AI translation services.