Jewel-Osco is reaping the benefits of a critical investment in its footprint, as the retailer recently opened its first micro-fulfillment center (MFC), a $7.6-million facility set to support approximately 1,000 online orders per day.
“This MFC carries approximately 6,500 items, which will cover about 60 percent of what you’d normally see in an online order,” said Mike Withers, President, during a ribbon-cutting ceremony. “Then the rest of the order will be selected from the Jewel-Osco that’s adjacent to this building.”
The facility stands at 20,000 square feet and will be staffed by 27 e-commerce employees, according to Chicago Tribune. In addition, another Chicago, Illinois-based MFC is reportedly planned for development in summer 2022.
Jewel-Osco will be utilizing an automated system to prepare its delivery orders; storage-and-retrieval technology brings products to the picker line, where four orders can be prepared at once before being moved to corresponding pick-up and delivery stations by robots. Takeoff Technologies utilized automated e-commerce fulfillment expertise to collaborate with Jewel-Osco on the facility’s development.
As the grocer continues to expand, Deli Market News will keep an eye out for the newest strategies and plays in the retail sector.