Dive Brief:
- Save A Lot will open a new micro-fulfillment center in Brooklyn, New York, through partnerships with Fabric, which will provide automated fulfillment solutions, and Uber, which will power on-demand delivery, according to a Tuesday emailed press release.
- The facility can assemble grocery orders in minutes and aims to streamline order processing, inventory management and supply chain efficiency.
- This tie-up marks Save A Lot’s first on-demand, online grocery delivery warehouse and is part of a larger expansion plan for New York City.
Dive Insight:
Save A Lot’s new MFC continues the discounter’s efforts to offer its customers affordable groceries along with convenience.
Fabric’s cube-based robotic storage system and automation solutions can put together 50-item orders in 6-8 minutes, allowing for 30-minute pickup and delivery options, according to the press release.
The Brooklyn-based MFC will process online orders placed on the Uber Eats app, building on the two companies’ current partnership that was announced in June.
The discount grocery chain plans to continue bolstering its last-mile delivery options by moving further in New York City, the announcement noted, but did not give a time frame for this expansion.
“Our partnership with Fabric and expansion into micro-fulfillment will streamline operations and allow us to offer accessibility to consumers wherever they are at competitive prices,” Bill Mayo, the discounter’s chief operating officer, said in a statement.
Save A Lot doesn’t only plan to grow its fulfillment and e-commerce business. At the start of this year, the company unveiled plans to triple its store count over the next few years. Currently, Save A Lot operates around 750 stores across 32 states.
