5 reasons grocery retailers should make the switch to electric freight today

Some of the world’s most renowned grocery retailers are making the switch to electric freight operations. The reason is simple. Electric road freight offers leading grocery retailers clear advantages over alternative solutions. The technology enables efficient urban logistics, ensures regulatory compliance and drastically reduces emissions – all while meeting rising stakeholder demands.

Grocery retailers and, more importantly, their consumers depend on transportation services that are reliable and cost-effective. Shelves and fridges must be restocked at the right time; fruits and vegetables need to reach homes while fresh – every week, all year. Only electric freight operations can beat traffic congestion, deliver at night, improve business metrics and meet CO2e targets.

With new regulations coming into effect and government incentives accelerating the transition, grocery retailers face increasing pressure to decarbonize their operations and ensure business continuance. To ensure stores receive their goods on time without incurring unnecessary expense, deliveries should not be disrupted by diesel bans or subjected to additional fees. Making the switch to intelligent electric freight operations means future-proofing operations in an increasingly competitive industry.

In this article, we share 5 reasons why grocery retail is the perfect sector for leading the urgently needed transformation of road freight.

1. Lanes that are ripe for electrification

Electrification allows for a large-scale and cost-effective transition today. While the complexity of this transition can vary across different logistics flows and supply chains, grocery retailers are particularly well-suited for a speedy process. In fact, their logistic flows and regional distribution structures align perfectly with the current capabilities of electric freight vehicles. Many of their lanes are already ripe for electrification, and the technology needed to make this happen is readily available today.

"The grocery retail sector is especially prime for scaling electric vehicle operations today." - Carl Ceder

Grocery logistics often involve regular, high-volume, and frequent operations, such as daily milk runs encompassing multiple stops and short distances. Electric freight vehicles are ideal for this setup as they can deliver temperature-sensitive and perishable products on time, safely, and in full – keeping shelves fully stocked at all times. Additionally, frequent deliveries and short distances create natural pauses for loading and unloading, which can align with the time needed to charge the vehicles. This increases asset utilization and reduces downtime – both of which pave the way to more cost-effective electric freight operations.

"The grocery sector operates with high predictability. It moves high volumes – frequently and to multiple locations – within high density areas, all of which are enablers for maximizing the efficiency and utilization of electric vehicles," says Carl Ceder, VP Nordics at Einride. “This means that the grocery retail sector is especially prime for scaling electric vehicle operations today.”

2. Urban freight operations

Successfully operating central stores today requires smart and efficient urban operations. With cities around the world implementing diesel bans and tighter regulations on heavy-duty vehicles, electric freight has emerged as a future-proof solution, allowing grocers to excel in urban environments. Urban freight operations enhance operational efficiency while reducing greenhouse gas emissions, air pollution and noise.

An increasing number of cities are implementing vehicle entry regulations, such as low- and zero-mission zones. As of today, these zones have been introduced by more than 300 cities across 16 European countries – a trend only expected to continue. In this evolving landscape, electric trucks have a distinct advantage: they go where diesel trucks can’t, allowing goods to be delivered without disruption – even within restricted areas or at restricted times.

"For us, it was very helpful to see that a large part of inner-city delivery traffic can already be carried out fully electrically today." - Sven Wallisch

Electric freight is also well-suited for night-time operations. Due to their quiet nature, vehicles bypass city noise restrictions. At Einride, this is referred to as whisper logistics. And it's advantageous for several reasons:

• It ensures timely delivery of perishables, reaching consumers while fresh
• It reduces traffic congestion by operating outside of rush hours
• It improves operational efficiency without disruptions

Night-time operations allow vehicles to take to roads around the clock, boosting overall logistics efficiency and increasing vehicle utilization.

Grocery retailers such as Lidl and REWE have made the switch to future-proof city freight operations with Einride as their transformation partner. Anna Pärsdotter, Head of Logistics at Lidl Sweden, says: “This way of working is aligned with our warehouse processes and allows for the handling of fresh goods with short lead times. For example, fruits and vegetables are delivered to the warehouse in the morning, handled in the afternoon, and then delivered to the stores during night, ensuring that consumers can enjoy fresh fruit and vegetables in the morning.”

Sven Wallisch – REWE’s Head of Transport Logistics, Region East – says: “For us, it was very helpful to see that a large part of inner-city delivery traffic can already be carried out fully electrically today. From a technical point of view, urban delivery traffic appeared as the simplest case of electrification.”

3. Increasing stakeholder demands and expectations

The increasingly competitive market combined with shifting consumer expectations are accelerating decarbonization efforts across the supply chain. As a result, companies that embrace more intelligent and resilient technologies will leap ahead, while those that fail to transition into more sustainable practices may risk falling behind.

The demand for resilient business practices is rising as consumers increasingly hold companies accountable for their impact on the environment. PwC’s Voice of the Consumer Survey 2024 reveals that 46% of consumers are buying more sustainable products to reduce their environmental impact, with more than 80% willing to pay a premium. At the same time, Gen Z is emerging as the generation of conscious consumers, showing the greatest concern towards sustainable practices and influencing other generations towards more sustainable retail. As an increasingly significant consumer segment, Gen Z is sending a clear message: retailers must prioritize sustainability efforts to meet consumer demands, improve customer satisfaction, and stay competitive in the marketplace.

With consumers' values rapidly changing and becoming a central purchase driver, electric transportation offers additional opportunities. Silent vehicles with no tailpipe emissions become moving billboards of a business’ commitment to their consumers and future generations. After all, delivering organic apples with a diesel truck is a bit ironic, isn’t it?

4. The need to report Scope 3 emissions

Starting in 2025, new regulations will require EU-based companies to report their Scope 3 emissions under the Corporate Sustainability Reporting Directive (CSRD). In 2026, this regulation will also apply to companies based elsewhere but with operations in Europe.

For grocery retailers, transportation often represents a large portion of these Scope 3 emissions. Looking at a leading Swedish grocery retailer, we can see that its freight transport accounts for approximately 78% of its Scope 3 emissions and 68% of its total CO2e emissions. Einride has helped shippers cut up to 95% of their transport-related emissions using an accredited methodology and with the issuance of substantiated reports.

As the European Union's 2030 deadline to cut emissions by 55% approaches, the retail and wholesale sectors face increasing pressure to accelerate their decarbonization efforts. Notably, as of April 2024, none of the top ten European grocery retailers have reported any progress on reducing Scope 3 emissions, meaning there is much to be done in the space of a few years.

Regardless of the share of a company’s total emissions, electrified transportation represents one of the greatest opportunities for grocery retailers to reduce GHG emissions. With the potential to achieve such a significant reduction in CO2e emissions – and with guaranteed results – this shift offers a transformative environmental and business impact. Now is the time to act.

5. Leading shippers are making the switch today

When it comes to the transformation of freight operations, grocery retailers who act now will yield greater benefits in the long run. Shippers already making the switch today include some of the world’s leading grocery retailers. Lidl Sweden, Kaufland and REWE are drastically reducing their freight emissions with Einride as their transformation partner.

Lidl began leveraging intelligent and cost-effective transportation in 2020, when Einride began operating its connected electric trucks in Sweden. Today, Einride is reaching 50% of Lidl's Stockholm stores, and there are plans to increase this to 85% of stores within five years. Since operations got underway, the partnership has curbed 460 tonnes of CO2e per year, while achieving a delivery precision of 99.4%. The partnership is now reaching new markets across Europe.

Another retailer electrifying its transportation is REWE, the second-largest food retailer in Germany. A network of Einride’s intelligently operated electric trucks now supplies over 300 supermarkets in Berlin and Brandenburg, covering 8% of REWE's Eastern Region transports. This shift has eliminated tailpipe emissions and saved up to 189 tonnes of CO2e annually. And that’s just the start of it. Further deployments are coming soon. Meanwhile, hypermarket chain Kaufland has also partnered with Einride to electrify its logistics, delivering over 20,000 emissions-free pallets each month.

Make the switch with Einride

Grocery retailers have a unique opportunity to future-proof their businesses by leveraging technology that’s already available today. Beyond reducing CO2e emissions, they will also avoid operational disruptions from tightening regulations imposed on heavy-duty vehicles, such as diesel bans and low-emission zones. As new regulations are rolled out and charging infrastructure becomes more of a challenge to provision, the cost of inaction will rise.

To make for a fast and impactful transition, leading grocery retail and FMCG businesses are choosing Einride as their transformation partner. Einride plans the shipper’s electrification rollout in deployment waves across regions and markets, in synergy with the corresponding supply chain partners. When shipping with Einride, businesses benefit from the intelligence of a digital freight platform that seamlessly coordinates all aspects of the shipping ecosystem, ensuring fast and reliable movement of goods, including perishables. It also means that for those needing to report Scope 3 emissions, all the relevant primary transportation data is just one click away.

By making the switch to electric freight today, grocery retailers can meet their business goals and CO2e targets, all while staying a step ahead of a shifting regulatory landscape and living up to the evolving demands of consumers when it comes to business practices. Shipping with Einride is about unlocking resilient and cost-effective freight operations – and grocery retailers are among the businesses best poised to leverage the opportunity now.

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Ready to transform the way you move? Be sure to discover our 6 steps to intelligent, sustainable road freight. You can also learn more about why now is the time to make the switch.

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