Alert Innovation signs agreement to be acquired by Walmart

Alert Innovation, a provider of e-grocery fulfillment automation, has signed a definitive agreement to be acquired by Walmart. Alert Innovation has been working with Walmart to customize technology for Walmart’s market fulfillment centers (MFCs) since 2016 and began piloting the Alphabot System in Walmart’s first MFC in Salem, New Hampshire in 2019.

“I am proud that Alert Innovation is one of the most innovative and capable automation companies in operation today. Our mission to improve people’s lives through innovation will now be dedicated to Walmart customers and associates which is an inspiring undertaking,” said John Lert, Alert Innovation Founder and Executive Chairman, in Alert’s Oct. 6, 2022, announcement.

“We will continue leveraging our development, manufacturing and deployment expertise to enable Walmart to build and scale MFC technology in its stores. With Walmart, we have the opportunity to positively impact millions of lives through the Alphabot System,” added Fritz Morgan, Alert Innovation CEO.

David Guggina, Senior Vice President of Innovation and Automation, Walmart U.S., commented, “We are committed to exceeding customer expectations and serving them in new ways, whether it’s in a store, curbside, or at their home. Bringing the best of Alert’s technology and capabilities in-house will enable us to reach more customers quicker by deploying MFCs with greater speed, providing both an unmatched shopping experience and a competitive advantage in omnichannel fulfillment.”

Alert Innovation will continue to operate under the Alert Innovation brand based in the Boston area.

Market research firm Interact Analysis, which tracks MFC automation, estimates that by 2030, there will be more than 7,000 automated MFCs installed globally, according to Rueben Scriven, senior analyst for Interact. In comments sent to Modern analyzing the Alert Innovation acquisition news, Scriven notes that Interact is “bullish” on the long-term outlook for MFCs, though there has been a bit a slowdown in the MFC market which this move from Walmart should help remove.

“Over the past 18 months, we’ve seen a slowdown in the market due to a chicken-and-egg scenario where grocers are waiting on other grocers to roll out automated micro-fulfillment centers at scale,” Scriven commented. “We believe Walmart’s acquisition of Alert Innovation will be the catalyst that breaks the inertia.”