After warehouse expansion

Online supermarket Gurkerl wants to expand again

With the "restart" and the partial automation of the warehouse, Gurkerl can now process up to 4,000 orders per day from Vienna and the surrounding area.

(Bild: APA/HELMUT FOHRINGER)

The online supermarket Gurkerl, which has been active in Vienna and the surrounding area since the end of 2020, wants to attract more customers again after expanding its warehouse. The grocery delivery service promises "a comprehensive restart" with the expanded capacities, including delivery within three hours and a 15-minute delivery window. 

Compared to the online stores of Billa and Interspar, the aim is to score points with faster delivery and a more regional product selection. "Our main target group is families with children," said Gurkerl CEO Mark Hübner. However, "we are also of interest to smaller households who value regional products and fast delivery for their weekly shopping." For the cost-conscious, there are also 300 own-brand products at entry-level prices.

The online supermarket launched in Vienna in December 2020 with 200 orders per day, with over 4,000 orders at peak times. When the warehouse expansion began in February 2023, the maximum capacity was reduced to 2,000 orders. "We were absolutely sorry about that," says the Gurkerl boss. The resulting cuts to the product range and delivery speed were "anything but ideal" for our customers.

Up to 4000 orders per day possible
With the "restart" and the partial automation of the warehouse, up to 4,000 orders per day can now be processed again. In the medium term, 8000 orders are also possible. The minimum order value was recently reduced again to 39 euros and the order value for free delivery to 79 euros.

As part of the warehouse expansion and capacity reduction, Gurkerl cut up to 290 jobs at the beginning of 2023, according to media reports. The company itself has never quantified the number of job cuts. The online supermarket currently employs around 330 people, including 100 delivery staff. By the end of 2025, the number of employees could rise again to around 500, the Gurkerl boss announced.

Warehouse space doubled
The online supermarket's logistics center in Vienna's 23rd district was expanded from 5,000 square meters to 10,000 square meters during ongoing operations and equipped with automated storage and picking technology from AutoStore in Norway and Brightpick in Slovakia. "With the automation, we are increasing capacity in the logistics center by 35 percent and boosting productivity by 50 percent," says the Gurkerl boss. The addition to the existing warehouse and the partial automation cost "a high single-digit million amount".

No expansion to other provincial capitals planned for the time being
The online supermarket's delivery area currently covers the whole of Vienna and Schwechat, Mödling, Baden, Korneuburg, Stockerau, Klosterneuburg, Wiener Neustadt and Eisenstadt. Smaller Lower Austrian and Burgenland communities near Vienna are also served. The food delivery service plans to further expand its delivery area around Vienna in the future. There are currently no plans to expand to another provincial capital in Austria.

Automation is expected to increase productivity by 50 percent.

(Bild: APA/HELMUT FOHRINGER)

In addition to supermarket goods, Gurkerl also sells food from around 180 producers from Vienna and the surrounding area, including 40 fruit and vegetable farmers. The food delivery company also offers products that are not available from other supermarkets in Austria, such as baked goods from Öfferl and Joseph Brot and food from the British department store chain Marks & Spencer. Products from Viennese restaurants are also available, including Eissalon am Schwedenplatz, Mochi and Zum Schwarzen Kameel. Gurkerl has a total of 12,000 products in its range and offers around 3,500 non-prescription pharmacy products in cooperation with the DaVinci pharmacy.

The online supermarket is part of the Czech Rohlik Group, which was founded in 2014. The online grocery delivery service is currently active in the Czech Republic, Hungary, Germany, Austria and Romania and recorded an increase in turnover of around a quarter to 700 million euros in 2023. 

Gurkel is aiming for a three-digit million turnover in the coming year, with profitability including marketing costs to be achieved by the end of 2025. "We have large shopping baskets of around 100 euros on average, a healthy margin structure and a promotional share of only ten percent of total sales," says CEO Hübner.