Walmart is opening five automated distribution centers to boost efficiency and keep up with demand.

From CNBC: 2024-07-10 08:07:47

Walmart is opening five automated distribution centers for fresh food to boost efficiency as its online grocery business grows. These 700,000 square feet facilities have automation for storing and retrieving perishable items. The retailer’s goal is to keep up with the increasing demand for store pickup and delivery, which drove 22% e-commerce gains in the U.S. in its latest quarter.

CEO Doug McMillon announced in 2023 that Walmart plans to increase profits faster than sales over the next five years by modernizing its supply chain. Automation allows the company to better predict demand and reduce costs. By early 2026, two-thirds of Walmart stores will use some kind of automation, improving unit cost averages by 20%.

The high-tech distribution centers will reduce manpower needs and increase productivity without hiring at the same pace in the past. Walmart aims to retain the same number of employees or more but with different job roles. Workers at the automated facilities will take on more supervisory roles instead of physical labor tasks.



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