Walmart (NYSE:WMT) is planning to take steps to enhance customer satisfaction by expanding its grocery network with advanced technology and focusing on creating a more connected supply chain to ensure faster product availability.
The retail giant is constructing five new perishable distribution centers (DCs) with high-tech capabilities. The first, operational since 2021, is located in Shafter, California.
Additional centers in Lancaster, Texas; Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey, will collectively add around 2,000 jobs to local communities.
These new distribution centers (DCs) will handle temperature-sensitive items like milk, meat, vegetables, and fruits that can spoil quickly, reported Reuters.
Also, Walmart is expanding four traditional perishable DCs, each gaining over 500,000 square feet of automation to boost fresh product capacity.
These expansions are taking place in Mankato, Minnesota; Mebane, North Carolina; Garrett, Indiana; and Shelbyville, Tennessee.
Walmart's Winter Haven, Florida perishable DC is undergoing upgrades to integrate the latest technology. This retrofit aims to test the feasibility of updating existing grocery buildings with automation, similar to the company's ambient distribution center in Brooksville, Florida.
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The introduction of state-of-the-art technology in facilities aims to increase speed and capacity, enhancing reliability for customers.
High-tech DCs can store double the cases and process more than twice the volume of traditional perishable DCs, significantly improving efficiency.
This investment in technology supports Walmart's goal of providing quick delivery and pickup services for groceries, utilizing its stores to fulfill online orders, reported Reuters.
Walmart, the largest grocery retailer in the U.S., generates nearly $650 billion in annual sales, with groceries accounting for 60% of its revenue, per the report.
By the end of its fiscal year 2026, Walmart aims for about 65% of its stores to be serviced by automation, further streamlining its supply chain and improving efficiency.
Walmart stock has gained more than 36% in the last 12 months. Investors can gain access to the stock via the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) and Vanguard Consumer Staples ETF (NYSE:VDC).
Price Action: WMT shares are trading lower by 0.17% at $70.29 at premarket at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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