Tesco talks three-year micro-fulfilment site plans at IGD Live

Tesco is set to open a number of micro-fulfilment sites in the UK.

The first one will be operational in March 2020, in West Bromwich. Three more will follow by summer 2020, and plans are in place for 25 over the next three years.

Jason Tarry, CEO UK & ROI, Tesco, discussed the project during a keynote speech at IGD Live, which is taking place in London today. The sites utilise 10-15k sq. ft of existing spaces and are two to three times more efficient, he said. In terms of future opportunities, Tesco is looking at 15% of sales and two million new customers, Tarry added.

Fabric

Israeli startup Fabric, formerly known as CommonSense Robotics, has emerged as a key player in the micro-fulfilment space.

Last month, we reported that it had raised $110 million in a Series B funding round. This was led by Corner Ventures with participation from Aleph, Canada Pension Plan Investment Board (CPPIB), Innovation Endeavors, La Maison, Playground Ventures and Temasek.

The venture, which has raised $136 million to date, plans to use the funds to accelerate its growth in the US, where it is developing a series of micro-fulfilment centres. A first site in the New York area is under construction and will be online in Q1 2020. “Our production-proven micro-fulfilment platform is fundamentally changing the face of retail,” said Elram Goren, Fabric CEO and Co-founder.

“Driven by our world-class proprietary technology, we are designing and building an entirely new logistics infrastructure in cities so that on-demand fulfilment and delivery can happen faster, cheaper, and at scale. Whether it’s enabling retailers to profitably fulfill one-hour deliveries or helping businesses restock their storefronts more efficiently, we aim to be the solution that empowers businesses to better serve their customers.”

John Cadeddu, Managing Partner at Corner Ventures, commented: “We are delighted to be partnering with the Fabric team in their incredible vision to reinvent how goods are fulfilled and delivered in this on-demand world, ultimately empowering retailers to provide faster deliveries at lower costs and at scale.”