Walmart Automates US Supply Chain to Compete With Amazon

Walmart is executing a multibillion-dollar, decade-long strategy to automate its United States supply chain to increase delivery speeds and close the gap with Amazon. The initiative involves retrofitting approximately 200 supply-chain buildings with robotics designed to sort merchandise and build pallets.

In partnership with Symbotic Inc., the retailer aims to automate all 42 of its nonperishable warehouses by 2030. The transition has faced technical challenges, specifically with robots struggling to process oversized items such as frozen turkeys and dog food. To address these issues, the company is replacing its standard cardboard shipping boxes with a shorter design.

Financial volatility has marked the rollout, including the acquisition of Alert Innovation for $400 million and its subsequent sale to Symbotic for $200 million. While the shift is intended to reduce reliance on manual labor, executives state that sales growth and high turnover rates mean the automation will not currently lead to layoffs.