Save A Lot and Fabric have entered into a new partnership to provide fulfillment solutions for on-demand grocery delivery with the opening of a Brooklyn, New York-based micro fulfillment center.
This collaboration combines Fabric’s automation with Save A Lot’s grocery essentials to enhance convenience for value-conscious consumers.
The rising cost of living has driven more customers to seek value-driven options with a focus on affordable prices and reliable delivery. Recent studies show that 77 percent of customers abandoned their online carts in 2023 due to dissatisfaction with delivery options, signaling the need for better logistics and supply chain efficiency. Consumer demand for grocery delivery also jumped nearly 10 percent in June as compared to the same period in 2023.
By improving its fulfillment strategy with Fabric, Save A Lot addresses these concerns and lays the foundation for long-term customer satisfaction in a market hungry for low-priced, high-quality groceries. This effort is part of a larger expansion, which includes a push into New York City to enhance last-mile delivery options. Orders placed from the Brooklyn online storefront on the Uber Eats app will be delivered to doorsteps by Uber couriers, bolstering Save A Lot’s ongoing partnership with Uber.
“At Uber, we know consumers are looking for fast delivery options for fresh, affordable grocery essentials, so we’re pleased to be partnering with both Save A Lot and Fabric who continue to innovate in the space,” said Nathan Bernheim, head of enterprise sales for grocery and retail at Uber. “Together, we can bring essential items to communities that need them in entirely new ways.”
Fabric facilities boast retention rates in the 90 percent range, thanks to higher wages and lower turnover than traditional grocery stores. While large grocery orders typically take up to two hours to fulfill, Fabric assembles 50-item orders in six to eight minutes, enabling fast 30-minute pick-up and delivery options. This model could revolutionize “free” 30-minute pick-up and delivery by combining the affordability of discount grocers like Save A Lot with advanced low-cost automation, resulting in better economics than traditional brick-and-mortar grocery stores.
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“At Save A Lot, we’re committed to keeping prices low and making sure our customers have access to the essentials, especially as inflation continues to affect household budgets,” said Bill Mayo, chief operating officer at Save A Lot.
“Our partnership with Fabric and expansion into micro-fulfillment will streamline operations and allow us to offer accessibility to consumers wherever they are at competitive prices. We’re excited to bring this affordable, convenient shopping experience to the New York market.”
The partnership’s consumer delivery center will launch in October at the Brooklyn warehouse, where Fabric’s cube-based storage system will automate Save A Lot’s grocery fulfillment for direct-to-consumer delivery across Brooklyn. Fabric’s solutions streamline operations, boost efficiency and enhance customer experiences.
“Our partnership with Save A Lot uses advanced automation to tackle one of today’s biggest challenges – rising consumer prices,” said Curt Avallone, co-CEO of Fabric.
“Our micro-fulfillment technology improves efficiency across the supply chain, helping retailers address the broader operational needs while delivering an exceptional customer experience. We’re proud to support the mission to make quality, affordable groceries more accessible.”
