Tesco robotic warehouse plans hit turbulence as Attabotics collapses into bankruptcy

Tesco’s ambitions to cement its role as a leader in autonomous retail technology have run into major disruption after its key warehouse automation partner went bust. Earlier this year, the supermarket giant struck a significant agreement with Canadian robotics firm Attabotics to develop cutting-edge robotic warehouse systems, an initiative that formed part of Tesco’s strategy to compete head-to-head with Ocado in the fiercely contested online grocery sector.

Attabotics’ sudden filing for bankruptcy protection has now thrown Tesco’s plans into disarray. The technology supplier is currently at the centre of complex court proceedings and is in the process of being sold to a US buyer, specifically Kentucky-based Lafayette Engineering, who has tabled a bid to acquire Attabotics’ assets and intellectual property. Until the court process concludes and ownership is officially transferred, Tesco remains in limbo and unable to progress further with integrating the technology.

The innovative Attabotics system relies on robots that pick orders from compact spaces, making it feasible for installations not just in expansive warehouses, but also in store rooms and urban convenience locations. Tesco is thought to maintain interest in the technology, though the next phase will depend on the outcome of Attabotics’ sale and whether terms can be agreed with the new owner.

The volatility in the warehouse automation space is prompting a reassessment of how British grocers fulfil online orders. Transcend Retail Solutions, a Tesco subsidiary formed last year, is already engaged in providing software and hardware to other supermarkets globally, including New Zealand’s Foodstuffs. Its technology enables staff to map the most efficient routes through stores for picking online orders. According to Tesco’s strategy chief Oliver Vogt, this system is “tried and tested”, serving both the company’s needs and those of external clients.

Roughly eighty-five percent of Tesco’s online orders are already picked directly from its high street stores, rather than being shipped from large-scale out-of-town automated centres. This trend is echoed by other major retailers, with Morrisons announcing a pivot away from Ocado’s robots in favour of in-store operations. Across the Atlantic, US supermarket chain Kroger has also signalled a more measured approach to large automated warehouses, temporarily halting the rollout of additional Ocado-powered sites and sparking speculation about its long-term strategy.

The shifting dynamics underscore the challenges of technology adoption in the grocery sector, where supply disruptions and operational flexibility are in constant tension. Tesco’s next moves will be closely watched as the retailer navigates this new era of hybrid automation and in-store fulfilment.