Associated Food Stores Powers Up Phase One of Distribution Center Automation Project with Symbotic Technology
Rhea-AI Summary
Associated Food Stores (AFS) and Symbotic Inc. (Nasdaq: SYM) have announced the successful activation of phase one of their warehouse modernization initiative at AFS' Utah distribution center. The implementation features Symbotic's end-to-end automation system with robotic case pick capabilities.
The modernization project aims to enhance retail-facing experiences through improved supply chain efficiency, expanded product selection, and optimized delivery. The system promises increased speed to shelf, better SKU availability, and improved inventory utilization.
AFS, serving nearly 500 independent grocers across nine Intermountain states, will maintain employment for all current distribution center team members while providing opportunities for skill development. The company will showcase the new automation system during a special event on March 6, 2025, featuring a power-up ceremony and guided tour of the facility.
Positive
- Implementation of advanced automation system to improve operational efficiency
- Retention of all current distribution center employees
- Enhanced inventory management and SKU availability
- Expanded service capabilities for 500 independent retailers
Negative
- None.
News Market Reaction
On the day this news was published, SYM declined 2.70%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Symbotic's end-to-end automation system, with robotic case pick capabilities, will allow AFS' distribution center to improve a variety of retail-facing experiences, including overall supply, expanded selection and delivery of products to stores. With improved accuracy and aisle-friendly pallet deliveries to stores, the system enables increased speed to shelf and SKU availability for AFS' customers, while improving inventory utilization for AFS itself.
To celebrate this achievement, AFS will host a special event on Thursday, March 6, at 10 a.m. MT, featuring a commemorative power-up ceremony and a guided tour of the newly implemented Symbotic system. Media representatives, industry partners and other stakeholders are invited to attend and witness firsthand the state-of-the-art automation technologies now operational within the facility.
The automation initiative is designed to transform the distribution center into a next-generation facility equipped to meet both current and future demands.
"The successful activation of phase one is a testament to our dedication to providing exceptional service to our member retailers," said David Rice, AFS' president and CEO. "By embracing advanced automation and partnering with Symbotic, we are positioning ourselves at the forefront of supply chain innovation, ensuring that our retailers receive products more efficiently and accurately than ever before."
Symbotic's Chairman and CEO, Rick Cohen, reinforced this sentiment: "We are excited to provide AFS with the innovation, flexibility and reliability provided by Symbotic's advanced A.I. and warehouse automation technology. We look forward to working with AFS for its next phase and continuing to support its retailers with a superior service experience."
According to Glen Keysaw, AFS' vice president of distribution, "Implementing the Symbotic system creates great opportunities for our distribution center team members to grow their skill sets and expand their future opportunities with the company. Due to the proactive efforts of our management team, all current team members at the distribution center will have jobs going forward and the distribution center will continue supporting current and future independent grocers throughout the Intermountain West."
This initiative underscores AFS' mission to empower local retailers with the tools and resources necessary to compete and thrive in an evolving marketplace.
ABOUT ASSOCIATED FOOD STORES
Associated Food Stores was established in 1940 when 34 independent retailers joined together to battle high supplier costs and competition from large chain stores. That fighting spirit has continued to help the grocery wholesaler grow over the last 75 years. With a focus on independent retailers, AFS has changed the way these retailers operate and allowed them to prosper. AFS currently serves nearly 500 retailers across the Intermountain West. For more information about Associated Food Stores visit www.afstores.com.
ABOUT SYMBOTIC
Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world's largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today's complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com.
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SOURCE Associated Food Stores
FAQ
What benefits does Symbotic's automation system bring to Associated Food Stores?
How many retailers will benefit from AFS's Symbotic automation implementation?
Will the Symbotic (SYM) automation project result in job losses at AFS distribution center?
When will Associated Food Stores showcase their new Symbotic automation system?
