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Associated Food Stores Powers Up Phase One of Distribution Center Automation Project with Symbotic Technology

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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.

Associated Food Stores (AFS) e Symbotic Inc. (Nasdaq: SYM) hanno annunciato l'attivazione con successo della fase uno della loro iniziativa di modernizzazione del magazzino presso il centro di distribuzione AFS nello Utah. L'implementazione prevede il sistema di automazione end-to-end di Symbotic con capacità di prelievo robotizzato.

Il progetto di modernizzazione mira a migliorare l'esperienza dei clienti al dettaglio attraverso una maggiore efficienza della catena di approvvigionamento, una selezione di prodotti ampliata e una consegna ottimizzata. Il sistema promette una maggiore velocità di approvvigionamento, una migliore disponibilità degli SKU e un utilizzo migliorato dell'inventario.

AFS, che serve quasi 500 negozi indipendenti in nove stati dell'Intermontano, manterrà l'occupazione per tutti i membri attuali del team del centro di distribuzione, offrendo al contempo opportunità per lo sviluppo delle competenze. L'azienda presenterà il nuovo sistema di automazione durante un evento speciale il 6 marzo 2025, con una cerimonia di attivazione e un tour guidato della struttura.

Associated Food Stores (AFS) y Symbotic Inc. (Nasdaq: SYM) han anunciado la activación exitosa de la fase uno de su iniciativa de modernización de almacenes en el centro de distribución de AFS en Utah. La implementación cuenta con el sistema de automatización integral de Symbotic con capacidades de selección de casos robóticos.

El proyecto de modernización tiene como objetivo mejorar las experiencias de los minoristas mediante una mayor eficiencia en la cadena de suministro, una selección de productos ampliada y una entrega optimizada. El sistema promete una mayor velocidad en el abastecimiento, mejor disponibilidad de SKU y una mejor utilización del inventario.

AFS, que atiende a casi 500 minoristas independientes en nueve estados de la región Intermontana, mantendrá el empleo de todos los miembros actuales del equipo del centro de distribución, al tiempo que ofrecerá oportunidades para el desarrollo de habilidades. La empresa presentará el nuevo sistema de automatización durante un evento especial el 6 de marzo de 2025, con una ceremonia de activación y un recorrido guiado por las instalaciones.

Associated Food Stores (AFS)Symbotic Inc. (Nasdaq: SYM)는 AFS의 유타 배급 센터에서 창고 현대화 이니셔티브 1단계의 성공적인 활성화를 발표했습니다. 이 구현은 Symbotic의 엔드 투 엔드 자동화 시스템과 로봇 케이스 피킹 기능을 특징으로 합니다.

현대화 프로젝트는 공급망 효율성 향상, 제품 선택 확대 및 최적화된 배송을 통해 소매 고객 경험을 개선하는 것을 목표로 하고 있습니다. 이 시스템은 선반에 대한 속도 증가, SKU 가용성 개선 및 재고 활용도 향상을 약속합니다.

AFS는 아홉 개의 인터마운틴 주에서 거의 500개의 독립 식료품점을 지원하며, 현재 배급 센터 팀원들의 고용을 유지하고 기술 개발 기회를 제공할 것입니다. 이 회사는 2025년 3월 6일 특별 행사에서 새로운 자동화 시스템을 선보이며, 전원 활성화 의식과 시설 투어를 진행할 예정입니다.

Associated Food Stores (AFS) et Symbotic Inc. (Nasdaq: SYM) ont annoncé l'activation réussie de la première phase de leur initiative de modernisation d'entrepôt au centre de distribution d'AFS dans l'Utah. La mise en œuvre comprend le système d'automatisation de bout en bout de Symbotic avec des capacités de prélèvement robotisé.

Le projet de modernisation vise à améliorer l'expérience des détaillants grâce à une efficacité accrue de la chaîne d'approvisionnement, une sélection de produits élargie et une livraison optimisée. Le système promet une augmentation de la vitesse de mise en rayon, une meilleure disponibilité des SKU et une utilisation améliorée des stocks.

AFS, qui dessert près de 500 détaillants indépendants dans neuf États de l'Intermountain, maintiendra l'emploi de tous les membres actuels de l'équipe du centre de distribution tout en offrant des opportunités de développement des compétences. L'entreprise présentera le nouveau système d'automatisation lors d'un événement spécial le 6 mars 2025, comprenant une cérémonie de mise sous tension et une visite guidée des installations.

Associated Food Stores (AFS) und Symbotic Inc. (Nasdaq: SYM) haben die erfolgreiche Aktivierung der ersten Phase ihrer Lagermodernisierungsinitiative im Verteilungszentrum von AFS in Utah bekannt gegeben. Die Implementierung umfasst das End-to-End-Automatisierungssystem von Symbotic mit robotergestützten Kommissionierfähigkeiten.

Das Modernisierungsprojekt zielt darauf ab, die Einzelhandelserfahrung durch verbesserte Effizienz in der Lieferkette, eine erweiterte Produktauswahl und optimierte Lieferungen zu verbessern. Das System verspricht eine erhöhte Geschwindigkeit beim Regalaufbau, bessere SKU-Verfügbarkeit und eine verbesserte Lagerauslastung.

AFS, das fast 500 unabhängige Einzelhändler in neun Bundesstaaten der Intermountain-Region bedient, wird die Beschäftigung aller aktuellen Teammitglieder im Verteilungszentrum aufrechterhalten und gleichzeitig Möglichkeiten zur Kompetenzentwicklung bieten. Das Unternehmen wird das neue Automatisierungssystem während einer besonderen Veranstaltung am 6. März 2025 vorstellen, die eine Aktivierungszeremonie und eine geführte Tour durch die Einrichtung umfasst.

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.

Insights

Symbotic's successful activation of phase one automation at Associated Food Stores' (AFS) distribution center represents a significant deployment milestone for the company's AI-powered robotic warehouse solution. This implementation demonstrates Symbotic's ability to execute large-scale automation projects for mid-sized distributors, expanding their market beyond retail giants.

The operational benefits highlighted for AFS are substantial: improved supply chain accuracy, faster aisle-friendly deliveries, increased speed-to-shelf, better SKU availability, and enhanced inventory utilization. These capabilities directly address critical pain points in grocery distribution where precision and efficiency translate to competitive advantage.

Strategically, this announcement confirms Symbotic's technology viability in the complex grocery vertical, which involves handling diverse product sizes, weights, and storage requirements. The mention of a "next phase" indicates this isn't a one-time implementation but rather an ongoing deployment with potential for continued revenue generation.

Particularly noteworthy is AFS's approach to workforce management - emphasizing skill development rather than displacement, which positions automation as workforce augmentation rather than replacement. This approach can reduce implementation resistance and improve customer adoption rates.

The scheduled media event featuring both CEOs highlights the strategic importance both companies place on this partnership, with AFS viewing automation as essential to supporting their network of nearly 500 independent grocers across nine states. This deployment validates Symbotic's value proposition in enhancing distribution capabilities for regional food suppliers competing against larger chains with more resources.

This successful phase one completion at Associated Food Stores represents a clear operational win for Symbotic in the competitive warehouse automation sector. By demonstrating successful implementation with a respected 85-year-old wholesale distributor, Symbotic establishes credibility with similar mid-market distribution companies considering automation investments.

The implementation addresses multiple operational challenges simultaneously - improving both distribution center efficiency and downstream retail operations through aisle-friendly pallet deliveries and increased speed to shelf. These benefits create a compelling ROI narrative that extends beyond simple labor savings.

What's particularly valuable about this announcement is the confirmation that Symbotic can successfully deploy its end-to-end system in phases, allowing customers to manage implementation risk and capital expenditure timing. The reference to a "next phase" indicates ongoing implementation work that typically correlates with milestone-based revenue recognition patterns.

AFS's emphasis that "all current team members at the distribution center will have jobs going forward" reflects thoughtful change management. This approach minimizes implementation resistance while creating opportunities for workers to "grow their skill sets" with more technical roles supporting the automated systems.

The warehouse modernization initiative positions AFS to better serve their network of independent grocers who must compete with larger chains that have already invested in supply chain modernization. For Symbotic, this implementation demonstrates their ability to deliver tangible operational improvements in the complex grocery distribution environment, which involves high SKU counts, variable product characteristics, and demand volatility.

FARR WEST, Utah, March 6, 2025 /PRNewswire/ -- Associated Food Stores (AFS), a leading provider of groceries and other goods and services to independent retailers in nine Intermountain states, and Symbotic Inc. (Nasdaq: SYM) announced the successful activation of an ambitious warehouse modernization initiative at AFS' Utah distribution center. This milestone advances AFS' 85-year commitment to efficiency and service for nearly 500 independent grocers in the Intermountain West.

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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/associated-food-stores-powers-up-phase-one-of-distribution-center-automation-project-with-symbotic-technology-302394600.html

SOURCE Associated Food Stores

FAQ

What benefits does Symbotic's automation system bring to Associated Food Stores?

The SYM system provides improved accuracy, aisle-friendly pallet deliveries, increased speed to shelf, better SKU availability, and enhanced inventory utilization.

How many retailers will benefit from AFS's Symbotic automation implementation?

Nearly 500 independent grocers across nine Intermountain states will benefit from the automation project.

Will the Symbotic (SYM) automation project result in job losses at AFS distribution center?

No, all current team members will retain their jobs and have opportunities to grow their skill sets.

When will Associated Food Stores showcase their new Symbotic automation system?

AFS will host a special event with a power-up ceremony and guided tour on March 6, 2025, at 10 a.m. MT.

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