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Diving overview:
- Walmart announced Thursday that it plans to open its fifth “next generation” fulfillment center.
- The 900,000-square-foot facility in Stockton, California, is scheduled to open in 2026 and will allow retailers to process online orders faster and more efficiently across the West Coast.
- The upcoming facility builds on Walmart’s commitment to building facilities that increase retailers’ next-day and two-day shipping capabilities through optimized processes.
Dive Insight:
Walmart continues its efforts to grow its list of next-generation fulfillment centers, betting big on the benefits it can gain by offering faster shipping and delivery.
In June 2022, Walmart announced plans to open four next-generation fulfillment centers, saying it would usher in a “new era of fulfillment” for retailers. In announcing the development of the four facilities, Walmart partnered with technology company Knapp to develop an automated high-density storage and retrieval system that condenses the retailer’s 12-step fulfillment process into five steps, which it already has in place. He said that it is being introduced into the US market. the retailer’s fulfillment center in Pedricktown, New Jersey;
With its four next-generation facilities, Walmart has the potential to deliver millions of items next-day or two-day to 75% of the U.S. population, and by combining these centers with its traditional centers, Walmart will He said it could bring the ability to 95% of the U.S. population. Population of the United States.
Walmart opened its first Next Generation fulfillment center in Joliet, Illinois last September, and has since opened its second Next Generation facility in Joliet, Illinois. Located approximately 32 miles from McCordsville, Indiana Indianapolis in June. A third facility is reportedly scheduled to open this fall in Lancaster, Texas, and a fourth facility is scheduled to open next year in Greencastle, Pennsylvania.
Now, Walmart is expanding its online order fulfillment capabilities on the West Coast. The Stockton facility, located 80 miles south of Sacramento, is intended to strengthen Walmart’s existing presence in California, which includes eight distribution centers, four fulfillment centers and 309 retail stores. The upcoming facility will require more than 1,000 workers, according to the announcement.
“The announcement of our high-tech fulfillment center in Stockton marks another significant step forward in our omnichannel retail efforts,” said Karisa Sprague, senior vice president of fulfillment network operations at Walmart US. This was stated in the presentation.
Sprague said the facility is aimed at responding to increased customer demand for online shopping.
In the second quarter, Walmart US e-commerce grew 24%.
Stores will continue to be an important part of Walmart’s e-commerce strategy as the company adds new next-generation facilities to its fulfillment network. The retailer noted that “double-digit” growth in in-store pickup and delivery led to the company’s second-quarter e-commerce sales increase.