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Albertsons eyes its own e-commerce infrastructure

Tech partnership called “major step” in becoming online grocery leader

Russell Redman

October 31, 2018

2 Min Read
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Albertsons Cos. has entered a technology partnership to begin building a back-end infrastructure for e-commerce.

The Boise, Idaho-based grocer said late Thursday that it has teamed up with e-grocery automation startup Takeoff Technologies to pilot a hyperlocal micro-fulfillment center with an existing store. 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 fulfillment solution for customers.

Narayan Iyengar, senior vice president for digital and e-commerce at Albertsons, called the partnership “a major step in our commitment to being a customer-centric player in the digital food and wellness ecosystem.”

“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 fulfillment 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.”

The solution works as follows: Albertsons customers enter their grocery orders online or via a mobile device, and the orders are routed to the automated system. Takeoff’s facility then takes over the fulfillment 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 need of charging fees or a price premium,” said Max Pedro, co-founder and president of Waltham, Mass.-based Takeoff.

Albertsons said it partnered with Takeoff because its solution is ready for implementation now. 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. 

Takeoff has reported that it’s working with five regional and national U.S. retail chains and plans to deploy several automated fulfillment sites next year. The company is targeting compact, vertical spaces to develop hyperlocal facilities that are an eighth of the footprint of a typical supermarket. Retailers use their existing e-commerce platform or Takeoff’s customized user interface for taking online grocery orders. For the robotics technology, Takeoff has an exclusive agreement with Knapp, a global provider of automated warehouse solutions.

Earlier this month, Miami-area grocer Sedano’s Supermarkets announced a pilot of a Takeoff automated fulfillment center with 14 of its stores. Takeoff also has been working with Ahold Delhaize USA on a mini robotic warehouse to assemble orders for its Peapod online grocery subsidiary.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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