Walmart (WMT), the nation’s largest retailer, is opening five automated centers nationwide. These facilities will help maintain and increase the giant retailer’s growth and dominance in the grocery business. Groceries have the lowest profit margins but drive Walmart’s most significant growth and sales. The company continues to sell vast amounts of clothing, home goods, jewelry, razors, toothpaste, electric toothbrushes, electronic goods, water bottles, and other everyday items daily, together with groceries.
The big box retailer has also expanded its in-house grocery brands, spurring profits from its grocery business. It is now opening high-facility distribution centers that can handle double the storage capacity and process volumes that are more than two times those processed by its traditional sites that do not have the proposed level of automation.
Walmart has built and tested its first automated distribution center for fresh food in Shafter, California. The second center has been opened in Lancaster, Texas, near Dallas. It plans to open three other centers in Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey.
Each facility will be approximately 700,000 feet. The chilled and frozen areas will use automation to store and retrieve perishable items. These include strawberries, chicken nuggets, and many more, sold at stores or added to web fans’ online orders when they use e-commerce to order frozen items.
Walmart expects to spend $22 billion on its expansion, including automation and remodeling existing stores. It is expected to have a certain degree of automation in more than 65 percent of its stores. The retailer said that more than half of its fulfillment center volumes will be processed through automated facilities.
Walmart has always been at the forefront of improving its services to give its customers the best bang for the buck. It is not only the largest grocer in the US, but it also continues to sell top-quality items in other categories at discounted prices from
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