Walmart Inc. said in a press release on Tuesday that it aims for 65 percent of its stores to be served by automation by 2026. The letter said that an “omnichannel” network will be used, which includes greater use of data, more intelligent software, and automation.
“Walmart showcased its supply-chain innovation Tuesday at its Brooksville, Florida, regional distribution center as one piece of how the company is building a scaled system of supply-chain capabilities that uses a combination of data, software, and robotics,” the press release reads.
The announcement came after the company’s annual investor meeting in Tampa, Florida.
Walmart claims that the higher automation will improve the delivery service to both stores and customers and will require less physical labor from its employees.
“By the end of fiscal year 2026, Walmart believes roughly 65 percent of stores will be serviced by automation, approximately 55 percent of the fulfillment center volume will move through automated facilities, and unit cost averages could improve by approximately 20 percent.”
The number of jobs that could be cut was not mentioned. On the contrary, the press release mentioned that the number of jobs will be maintained or even increased.
In the previous days, Walmart revealed plans to lay off more than 2,000 people at facilities that fulfill online orders.
Walmart has increasingly used its huge stores to handle online-order deliveries and has invested heavily in automation to speed up order processing at its e-commerce fulfillment facilities.
The company expects this “omnichannel” strategy to increase its sales, aiming for a 4 percent sales growth for the next three to five years. If achieved, this will translate to $130 billion more in sales revenue. Today, Walmart has a sales revenue of $600 billion.
Walmart operates in 20 countries and has 2.1 million employees worldwide, of which 1.7 million people are employed in the United States. It operates more than 5,000 U.S. stores. The company did not immediately respond to questions, asked by Reuters, about whether the moves will result in any near-term layoffs.
Walmart has invested billions of dollars in technology for its online order facilities, including buying grocery robotics company Alert Innovation, and partnering with companies such as Knapp to help cut the number of steps it takes for employees to process e-commerce orders down to five from 12.
On a post-earnings call in February, Walmart CEO Doug McMillon said he was “most excited about the automation opportunity we have” with plans to increase investments in automation technology as part of its more than $ 15 billion capital spending budget this year.
