Erotics giant EDC Retail is investing around €4 million in expansion of storage and production capacity. The construction of two new halls and the arrival of an extra packing machine will double the capacity of the company behind webshop EasyToys. EDC Retail wants to keep a larger stock there, should a second corona wave cause problems for suppliers.
The erotica giant wants the new building to be ready for future growth. Last year, EDC Retail turned over €33.4 million in sales, a growth of more than 50 per cent compared to 2018. In addition, the corona period put the company on edge. The crisis was logistically challenging, caused by initial supply problems from China and the boom in orders. EDC had to pull out all the stops to process the orders.
Stock for a year
"Corona has taught us how important it is to be ahead of changes in the market and have the ability to build a larger stock," said Eric Idema, CEO of EDC Retail. "We want to be prepared for a possible second wave. That way, we are also less dependent on any problems with suppliers."
Finally, EDC wants to better respond to seasonal peaks. "For instance, we see sales rising around the Christmas period. The crowds are already increasing around Black Friday. Also, the advent calendar, a surprise box of toys, is a seasonal product and requires a lot of space."
EDC Retail operates from 8,000-square-metre premises in Veendam. The first hall of 650 square metres will be built this summer and should be ready in September. The second hall will be built next summer and will be significantly larger at 2,400 square metres. The expansion will provide space for thousands of pallet spaces. This will give the erocktics company enough space for a year's supply instead of three months.
Machine packaging
Production capacity is also being expanded. Currently, EDC Retail still uses one packing machine and one packing line, soon it will be two packing machines and two packing lines. Production capacity will therefore double and larger boxes can be packed. 95 per cent of all orders will soon be packed by machine. "Our logistics department is operational 24 hours a day, making optimal use of the machines," says Idema.
The expansion is expected to employ around 30 to 40 employees. They will work in halls fitted with solar panels. Eventually, the halls should be self-sufficient and generate as much energy as they consume.
