Albertsons and Takeoff Technologies have partnered to collaborate on the future of grocery micro-fulfillment centers (MFC). The two companies have decided to form a strategic partnership with dedicated teams to collaborate on the evolution of the micro-fulfillment capabilities to drive the future of e-commerce order fulfillment.
Albertsons has also agreed to purchase additional MFCs from Takeoff and is evaluating market expansion opportunities. Albertsons and Takeoff. Worked closet together on the successful implementation of the company’s first MFC in South San Francisco in October 2019.
“The micro-fulfillment center model is a key element in the store of the future,” said Vivek Sankaran, Albertsons’ President and CEO. “It combines the efficiency of automation with the ease of meeting consumers’ demands of when and how they want to shop. In working with Takeoff, we can evolve how the MFC ties into our store and e-commerce ecosystems and accelerate our path to best serve our consumers.”
The partnership began in 2018 with the announcement of two pilot micro-fulfillment centers that would be constructed in existing grocery stores.
“We are thrilled to broaden our partnership with Albertsons, a clear leader in grocery retailing and a key player shaping the future of eGroceries,” added Max Pedro, Co-founder and President of Takeoff. “With our strategic partnership, we’re confident we’ll be able to add significant value to their business and consumers as we work in partnership to define the future of e-commerce.”
Micro-fulfillment centers bring together the proximity of brick-and-mortar stores with the automation capabilities of a large warehouse. Located inside an existing store, micro-fulfillment centers typically hold about 15,000 to 18,000 of the local market’s most popular products.
“In collaborating with Takeoff, we’re able to leverage their thought leadership in e-commerce fulfillment with our expertise in running great grocery stores that meet consumer’s everyday needs, and that’s exciting turf for us,” said Chriss Rupp, evp and Chief Customer and Digital Officer at Albertsons. “By placing an MFC in an existing store close to consumers, we can carry a diverse and locally relevant selection of products with the friendly touch of our local team to service the consumer.”
According to research by Takeoff Technologies, micro-fulfillment centers increase productivity by up to 10 times through improved speed, productivity, accuracy and efficiency. By providing real-time information about inventory, robotic fulfillment can greatly reduce or even eliminate product substitutions.
“We’re living in historic times. The grocery industry is transforming its way into the future, and the winners will be the ones getting it right first. Albertsons’ move to expand its micro-fulfillment capability is a clear testament of such transformation,” said José V. Aguerrevere, Co-founder and CEO of Takeoff.