Kroger Scales Back Automation Strategy, Closing Three Robotic Fulfillment Centers
By
JumpCrisscross
Kettled twice. Extra chewy, extra trustworthy.
Summary
Kroger is closing three of its robotic e-commerce fulfillment facilities, marking a significant reversal from its previous automation strategy. The grocery retailer had partnered with UK-based Ocado to develop high-tech fulfillment centers but is now scaling back due to changing market conditions in grocery e-commerce. This move reflects the challenges of making online grocery delivery profitable through extensive automation.
Key quotes
· 4 pulledKroger's announcement on Tuesday that it will shutter three of its robotic e-commerce fulfillment facilities represents a sharp turnabout for the grocery company
which until recently had expressed confidence in its ability to leverage automation to run a profitable online grocery business
Less than a year ago, Kroger said it planned to expand the fleet of high-tech fulfillment centers it has been developing in partnership with U.K.-based warehouse automation company Ocado
The retailer's decision to close three automated fulfillment centers reflects the stark changes in grocery e-commerce that have taken place in the years since it launched its partnership with Ocado
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