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The next steps on our journey to supply chain modernization

The next steps on our journey to supply chain modernization
The next steps on our journey to supply chain modernization

Over the past few years, one thing has become clear: Walmart customers love options. From the strength of our delivery business to our innovative shelving in-store and online, we’re seeing customers take advantage of every opportunity to save money and live better.

As customers’ shopping habits change, we’re taking steps to further build their trust and ensure the things they want – and need – are on shelves faster than ever before. To do this, we’re investing in data, increasingly intelligent software and automation – all to transform our business and create a more connected supply chain.

Just as we’ve brought new technology to our ambient and fulfillment networks, I’m excited to tell you more about the future of our grocery network. Our grocery transformation can be broken down into three different approaches:

  • New buildings — We are building five brand new high-tech perishable distribution centers. Our first high-tech DC in Shafter, California, has been operational since 2021. The second in Lancaster, Texas, is currently starting operations and will be followed by Wellford, South Carolina, Belvidere, Illinois, and Pilesgrove, New Jersey. Together, these facilities will bring approximately 2,000 new jobs to these communities and our supply chain network.
  • Extensions — We are expanding four traditional perishable distribution centers by adding over 500,000 square feet of automation per location to increase fresh product capacity. We will expand facilities in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana and Shelbyville, Tennessee.
  • Retrofits — Our perishable food distribution center in Winter Haven, Florida, is being modernized by incorporating the latest technology into the space. Our goal is to learn more about the feasibility and requirements of retrofitting an existing grocery store building with automation technology – similar to what we did with our ambient food distribution center in Brooksville, Florida.

Investments in technology and our employees

Our business is growing. Walmart is the largest grocer in the U.S. Our grocery network serves over 4,600 stores with a huge pickup and delivery business that continues to grow as customers appreciate the convenience and value we offer.

That’s why we’re equipping our facilities with cutting-edge technology to achieve greater speed and capacity, and to serve our customers even more reliably. For example, these high-tech distribution centers can store twice the number of cases and process more than twice the volume of a traditional perishables distribution center. This more than doubles the number of cases processed per hour!