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The Estée Lauder Companies Strengthens Its Global Fulfillment Network with the Opening of a New, State-of-the-Art Galgenen Distribution Center Dedicated to the Travel Retail Channel
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Rhea-AI Summary
The Estée Lauder Companies (EL) has inaugurated a new 300,000 square foot distribution center in Galgenen, Switzerland, aimed at enhancing its Travel Retail operations, which account for 28% of the company's sales. This strategic expansion aligns with the growing demand in the duty-free market, estimated to reach over 3 billion consumers annually. The facility is designed with innovative, sustainable features, including energy-efficient systems and renewable energy capabilities, underscoring ELC's commitment to sustainability while boosting operational efficiency.
Positive
New distribution center expands ELC's Travel Retail capacity, supporting significant growth.
Travel Retail division accounts for 28% of ELC's sales, indicating strong market performance.
Facility features sustainable design, enhancing ELC’s commitment to environmental responsibility.
Galgenen center expected to double Travel Retail's output capacity, providing flexibility for future growth.
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GALGENEN, Switzerland--(BUSINESS WIRE)--
The Estée Lauder Companies (ELC) today announced the opening of its new, state-of-the-art distribution center located in Galgenen, Switzerland to accommodate the dynamic and future growth of its global Travel Retail business. Travel Retail, which covers the world of duty-free environments including airports, downtown locations, airlines, cruises and border shops, is one of the company’s highest growth channels and touches over 3 billion consumers a year. This new 300,000 square foot facility expands upon the company’s existing distribution footprint in Switzerland and will enable ELC to remain at the forefront of delivering its prestige beauty products and high-touch services to traveling consumers around the world. The center is equipped to support the continued growth of Travel Retail and will further drive the company's sustainability efforts.
Umair Ansari, VP/GM, Travel Retail EMA, Fabrizio Freda, President and Chief Executive Officer, Jane Lauder, EVP, Enterprise Marketing and Chief Data Officer, and Roberto Canevari, EVP, Global Supply Chain cut the ribbon at the new Galgenen distribution center. (Photo: Business Wire)
Fabrizio Freda, President and Chief Executive Officer, Israel Assa, Global President, Travel Retail Worldwide and Roberto Canevari, Executive Vice President, Global Supply Chain hosted the opening ceremony with Nadine Graf, Senior Vice President, General Manager, Europe, Middle East, and Africa (EMEA), Maike Kiessling, General Manager, Switzerland, Jamal Chamariq, Senior Vice President, Global Supply Chain, EMEA and Travel Retail Worldwide and Sascha Trabelsi, Vice President, Supply Chain, Travel Retail Worldwide. The opening ceremony was attended by special guests including retailers, suppliers, local government officials, media and ELC employees.
“Travel Retail continues to demonstrate its resilience, driving tremendous growth over the last decade for The Estée Lauder Companies. We remain extremely confident in the channel for the long-term, especially as travel restrictions ease globally and people start traveling again,” said Fabrizio Freda. “The opening of our new Galgenen distribution center will enable us to adapt even better to ever-changing retail needs and growth opportunities for the channel, and expand upon our existing distribution presence in Switzerland.”
The Estée Lauder Companies’Travel Retail division isthe market share leader in the channel within the total beauty category across skin care, makeup, fragrance and hair care1. With a strong brand portfolio that resonates with consumers globally, ELC’s Travel Retail division continually demonstrates best-in-class marketing activations tailored to travelers’ needs, recruits new consumers and builds brand equity around the world. Accounting for 28% of ELC’s sales in fiscal year 2021, Travel Retail is uniquely positioned to win in this high growth environment with the company’s recent investment to expand its distribution network to meet the demands of the traveling consumer population.
“As we mark the 30th anniversary of The Estée Lauder Companies’ Travel Retail business, we are incredibly proud of our track record of exciting and delighting travelers all over the world with our exclusive products and high-touch experiences for the Travel Retail industry and having made the channel an integral engine of growth for ELC,” said Israel Assa. “As we look to the future, this investment here at Galgenen is a testament to our belief in the long-term growth potential of this channel and that by investing in these capabilities and with our retailers, we can capture the next generation of growth in this dynamic, prestige marketplace.”
The Estée Lauder Companies has a long history of success within Switzerland, opening its affiliate office more than 55 years ago and its first manufacturing plant more than 45 years ago. As the fifth largest employer in the canton of Schwyz, ELC prides itself on its inclusive and collaborative culture, competitive compensation and benefits, career development opportunities, commitments to health, safety and sustainability, and high-performance. The company currently has four distribution centers in Switzerland. Switzerland is also home to ELC’s EMEA and TR Supply Chain Management Hub in Wollerau, which drives agility, speed, and collaboration across our EMEA and Travel Retail supply chain teams. With the addition of the new facility in Galgenen, the Travel Retail business will double its total output capacity, enabling the flexibility necessary to adapt to the channel’s high growth potential.
“Galgenen will serve as a cornerstone of The Estée Lauder Companies’ agile, global fulfillment network,” said Roberto Canevari. “This distribution center will not only significantly enhance our capacity but enable operational efficiencies, speed-to-market and resiliency through innovative, highly automated equipment and technologies. Additionally, we are proud that Galgenen is also a shining example of ELC’s commitment to safety, quality, and sustainability.”
Galgenen will further advance the sustainability of ELC’s global manufacturing and distribution network and the company through its best-in-class environmental design and renewable energy efforts. The building’s design is based on the newest standards to reduce energy and water consumption. It features total LED lighting, an energy-efficient HVAC system and the roof’s solar panels generate 1600 kilowatts at peak performance (kWp). Furthering sustainability efforts, a comprehensive waste management system has been implemented to separate out numerous recyclables, with electric trucks ready for waste removal. As part of the recycling undertaking, wooden waste pallets will generate renewable heating energy. Worldwide, ELC is driving strategic initiatives to reduce its environmental footprint, integrate environmentally responsible practices and invest in innovative technology as part of efforts to not only provide consumers with transformative products and experiences, but also to contribute to the well-being of the planet.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin Paris, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced and Dr. Jart+, and the DECIEM family of brands, including The Ordinary and NIOD.
What is the significance of the new distribution center in Galgenen for Estée Lauder (EL)?
The new distribution center in Galgenen is significant as it enhances Estée Lauder's capacity in the Travel Retail segment, which is a major growth area for the company, accounting for 28% of its sales.
How much space does the new distribution center occupy?
The new distribution center occupies 300,000 square feet.
What percentage of Estée Lauder's sales comes from Travel Retail?
Travel Retail accounts for 28% of Estée Lauder's sales.
What sustainable features does the new Galgenen distribution center include?
The Galgenen distribution center includes energy-efficient systems, LED lighting, and solar panels that generate renewable energy, supporting ELC's sustainability goals.
How will the new distribution center impact Estée Lauder's operations?
The new center will double the output capacity for Travel Retail, enhancing operational efficiency and adaptability to market demands.
