Walmart Expands with Five Automated Distribution Centers to Strengthen Grocery Market Presence

Money | July 10, 2024, 7:05 a.m.

Walmart is ramping up its automation efforts by opening five new distribution centers for fresh food across the country. These facilities are equipped with cutting-edge technology to efficiently store and retrieve perishable items like strawberries and frozen chicken nuggets. As the retailer expands its online grocery business, it is modernizing its supply chain to meet the growing demand for store pickup and delivery services. By automating its facilities, Walmart is able to improve inventory management, reduce costs, and increase operational efficiency. The high-tech distribution centers are projected to increase storage capacity and processing volume, leading to significant improvements in cost-effectiveness. This strategic move towards automation is expected to drive higher spending at Walmart, with the company planning to invest billions of dollars in expanding automation and improving its stores. By 2026, Walmart aims to have the majority of its stores serviced by automated facilities, resulting in a projected 20% improvement in unit cost averages.