On April 5, it was announced that Thomas H., the principal owner of robotics company AutoStore, Lee Partners (THL) is selling 40% of its shares to the Japanese investment bank SoftBank for the equivalent of 2.8 billion USD, which means that the Norwegian company AutoStore is currently valued at 66 billion SEK (THL values the company at 7.7 billion USD, equivalent to 65.8 billion SEK). THL remains the majority owner, but with SoftBank as a major shareholder, the goal is to further drive the company’s global growth. AutoStore currently has 20,000 robots in operation at more than 600 facilities in 35 countries. The company’s growth is primarily occurring in the retail sector, where it is driven by increasing e-commerce, with demands for ever-shorter lead times and high efficiency in order-to-delivery flows.
E-commerce automates – significant growth in the grocery sector
Recently, the rapid growth of e-grocery—online grocery retail—has further driven up demand for AutoStore’s technology. In the U.S., major grocery retailers H-E-B, H-Mart, and The Giant Company have recently invested in small, state-of-the-art AutoStore facilities, known as micro-fulfillment centers. And Walmart has been rapidly automating its operations for some time now. The rapid growth of e-commerce in the grocery sector is expected to drive automation development in the coming years, and most automation companies already active in warehouse automation are focusing on developing solutions for fast, cost-effective, and space-efficient fulfillment of grocery goods. This trend has accelerated even further in 2020 as a result of COVID-19 and is now driving the emergence of an increasing number of new, creative, automated warehouse solutions in close proximity to consumers.
Micro-Fulfillment Centers
One solution that is growing rapidly in the U.S., among other places, is micro-fulfillment centers integrated with automated in-store solutions. Here, automated solutions are being developed both to quickly and densely consolidate and deliver e-commerce orders, and to offer traditional—yet automated—in-store retail experiences featuring fresh produce and other perishable items. Another solution that is becoming increasingly common is called the “Bolt-on Store.” This involves a combination of a small, automated warehouse that restocks local stores but also serves as a pickup location for the rapidly growing number of e-commerce consumers. With demands for smaller order sizes, a wider selection, and faster and more convenient deliveries, new solutions are needed. Amazon and Walmart are pioneers in this trend, which is why it has progressed the furthest in the U.S.—a trend that is now expected to gain momentum in Europe and Asia as well.
