Albertsons Cos. has entered a technology partnership to begin building a back-end infrastructure for e-commerce.
The Boise, Idaho-based grocer recently said that it has teamed up with e-grocery automation startup Takeoff Technologies to create a pilot project to create a hyperlocal micro-fulfilment centre with an existing store. Albertsons called the partnership “a major step in our commitment to being a customer-centric player in the digital food and wellness ecosystem.
The effort comes as retailers are looking to data to help inform their buying decisions. It also comes as grocers increasingly focus on the local or upstart brands that shoppers are now wanting.
Takeoff’s artificial intelligence-enabled robots can collect items for online grocery orders in minutes, at a fraction of the speed and cost of manual-picking processes. With the move, Albertsons said it’s the first national grocer to implement an automated e-commerce fulfilment solution for customers.
“If you’re a small player with a very good product or a big consumer packaged goods company with a small unit, you will struggle to get the attention of some of our larger banners,” said Narayan Iyengar, senior vice president of digital marketing and e-commerce at Albertsons.
“Investing in e-commerce directly benefits our customers, and anything that we can do to simplify their grocery shopping experience to save valuable time is a win,” Iyengar said in a statement. “While our partnership with Takeoff Technologies will streamline e-commerce fulfilment and improve our efficiencies, we’re excited that Takeoff’s AI solution will make it even easier for customers to get their groceries how and when they want.”
How will it work?
Albertsons customers will place their grocery orders online or via a mobile, and the orders are then routed to an automated system. Takeoff’s facility then takes over the fulfilment process. The AI-enabled robots and a system of totes and conveyors deliver the items to an Albertsons’ employee, who prepares the orders for customers.
The companies noted that the system slashes the amount of time for individual customer orders to be processed. And the automated warehouse is replenished daily, just as supermarket store shelves are stocked regularly, they said.
“Our e-grocery automation is a turnkey solution that uses artificial intelligence to unlock ultimate convenience for shoppers without the need of charging fees or a price premium,” said Max Pedro, co-founder and president of Waltham, Mass.-based Takeoff in a statement.
The retailer, which has nearly 2,300 stores in 35 states, noted that Takeoff’s model leverages the existing supply chain and store footprint and is flexible in picking various types of products.
