Tesco's Robotic Warehouse Plans in Limbo as Attabotics Files for Bankruptcy
Tesco's ambitious expansion into robotic warehouses for online order fulfilment has hit a snag. Its partner, Attabotics, has filed for bankruptcy, leaving Tesco's plans in limbo and raising questions about its ability to keep up with competitors.
Tesco's deal with Attabotics is now being sold off in a US court process. The Canadian robotics company filed for bankruptcy, threatening to delay Tesco's push into autonomous grocery fulfilment. Meanwhile, Morrisons has scaled back its use of Ocado's facilities, and US giant Kroger is rethinking its deal with Ocado.
Tesco cannot move forward with its plans until the acquisition deal is finalised. Kentucky-based Lafayette Engineering has bid to acquire Attabotics' assets and intellectual property. Attabotics' technology was designed to use robots to pick groceries in compact urban warehouses and backroom store spaces. Tesco is still interested in this technology but the setback has caused uncertainty.
Tesco is also exploring other options. It is already experimenting with its own subsidiary, Transcend Retail Solutions (TRS), for fulfilment software. TRS technology helps design efficient picking routes inside stores, which could become more attractive as rivals retreat from costly out-of-town robotic depots. The company Ocado, which tried to compete with Tesco in the robotics warehouse industry, sold its U.S. business to another buyer after filing for bankruptcy.
Tesco's expansion plans are on hold due to Attabotics' bankruptcy. While Tesco remains interested in Attabotics' technology, it is also exploring other options through its subsidiary, TRS. The delay raises questions about Tesco's ability to keep pace in the online grocery market, as competitors reassess their strategies. The outcome of the court process will determine the next steps for Tesco's robotic warehouse plans.
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