Walmart Inc has recently announced that by the end of 2026, it expects 65% of its stores to be automated serviced. This move comes as the retail giant invests heavily in technologies that can help reduce the need for manual labor and allows for increased fulfillment of online orders.
The retail giant also said it expects a 20% improvement in the average unit cost of packages processed through its fulfillment centers. As a result of the automation, the company anticipates increased throughput per person while also maintaining or even increasing its number of associates by creating new roles.
Doug McMillion, the CEO of Walmart, is excited about the changes that automation brings and the company has allocated more than $15 billion for capital spending in order to implement these strategies. This could eventually lead to better inventory management, a rapid growth for its e-commerce business, and an overall increase in profits.
Walmart is the world’s largest retailer, with around 1.7 million U.S. employees and another 60,000 abroad. Although the recent announcement does not clarify any layoffs that these changes may cause, it does say that the automation will reduce the need for lower-paid roles and allow for increased pay.
With the ever-growing competition in the retail sector, Walmart is hoping that the massive investments they are making in automation will help to ensure their ability to stay competitive.
The company is headed by CEO Doug McMillon, who has been with the company since 1984 in various positions. He became CEO in 2014 and has since been responsible for Walmart’s record profits and immense growth. He is responsible for Walmart’s ambitious automation plans, which he is planning to implement with the help of capital spending.
