The term micro-fulfillment can be thought of as an emerging trend in grocery where you set up automated micro-fulfillment centers (MFCs), typically in the back of a store or attached to it. The concept of "dark store" functions as an automated MFC to serve a ring of nearby consumers and non-automated stores. The automation for MFCs typically uses robotic, high-density storage and picking systems, offered by several startups, as well as some major warehouse automation providers. The MFC market has high growth potential, according to analyst firm Logistics IQ. Their MFC market study pegs the market as reaching $10 billion by 2026, growing at a compound annual growth rate of 60% between 2020 and 2026. Grocery is going to be the main contributor for this market, according to Logistics IQ, although general merchandise and other industries may pursue the model. Logistics IQ finds that MFC automation typically ranges between 5,000 to 25,000 square feet of space.
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