Micro-fulfillment centers and automation will be critical for grocery chains to meet still-burgeoning demand for online orders and deliveries quickly and efficiently, according to a new report on the sector from JLL. 

"Micro-fulfillment centers (also known as MFCs) aren't new, but they are a growing solution for many grocers," the report notes. "MFCs provide flexibility as they are much smaller in size than a typical industrial-grade fulfillment center. They can be put into dark stores, adjacent to existing stores, or located centrally to multiple stores as a hub-and-spoke model."

Despite restrictions lifting in many states, the demand for digital grocery sales continues to tick up, with major player Kroger posting 118% digital sales growth in the fourth quarter and competitor Albertsons partnering with Takeoff Technologies to create micro-fulfillment centers to specifically post online orders. JLL notes that Stop & Shop, Meijer and Target are all following suit with plans to begin building their own MFCs to increase digital reach.