Walmart announced that more than half of its stores will incorporate mechanization and automation by the end of fiscal 2026. The Company is installing equipment in 65 percent of stores to fulfill online orders and deliveries. These changes will inevitably result in a reduction in head count but with remaining jobs offering higher pay based on education, training and experience.
Walmart recently acquired Alert Innovation, a robotics manufacturer, and is cooperating with Knapp a developer of software solutions to expedite orders. Walmart has announced pink slips for 2,000 workers at fulfillment centers but the Company is achieving higher output per worker in anticipation of a five percent increase in quarterly sales going forward.
Walmart has lagged Kroger in introducing mechanization but has avoided high upfront capital expenditure as expended by Kroger building Ocado installations. Numerous large stores and their location as operated by Walmart are suitable for mechanical installations. This has obviated the need to construct free-standing fulfillment centers with hub-and-spoke distribution as selected by Kroger.