Walmart shares were up by 2% at Wednesday’s close after the retail chain announced its plans to invest in supply chain automation. The company hopes that this will help to boost its profit margins, expand its operating margin, and drive top-line growth.
During its latest investor meeting, Walmart stated that it aims to have 65% of its stores serviced by automation by the end of the fiscal year of 2026. In addition, the retail giant wants at least 55% of its fulfillment center to be automated, predicting a 20% improvement in unit cost averages as a result.
U.S. President and CEO John Furner expressed his optimism regarding this transformation, claiming that fulfillment centers “can double the number of orders we are able to fulfill in a day, which means packages arrive at customer’s doorstep faster than ever before.”
Walmart’s push for automation comes after the retailer underwent layoffs at five of its U.S. e-commerce warehouses, cutting over 2,000 positions in total.