Walmart plans to turn more stores into warehouses to take over Amazon

Walmart announced on Wednesday that it will add dozens of automated 20,000-square-foot to 30,000-square-foot distribution centers over the next few years, either at or near the back of its stores.
At the centers, the robots will collect thousands of pantry items and frozen food instead of employees, which Walmart says speeds up the process. The items will be taken to an area where Walmart employees can assemble them on orders for collection or delivery.

The centers can also facilitate traffic in store aisles because they will limit the number of Walmart employees gathering inventory directly from the store floor to fulfill online orders. Crowded aisles are a growing problem for stores as online shopping accelerates, and retail analysts say these automated distribution centers help solve that challenge.

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Walmart’s plan emerges as an increase in online orders during the pandemic. Walmart’s online sales, which include pick-up and delivery, increased 79% during the three months ended October 31 compared to the same period last year. In the previous quarter, online sales grew 97% over the previous year.

The company hopes that the addition of these new service centers will allow stores to handle more orders and get them ready at a faster rate.

Tom Ward, senior vice president of products for Walmart customers in the United States, said in a call with reporters on Tuesday that the centers would allow Walmart to collect sidewalks and home deliveries in an hour.

Walmart is not the only large supermarket chain that experiments with these small supply centers in its stores. Albertsons and Stop & Shop are also testing them in their own stores.

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