Big box retailer Walmart expects almost two-thirds of its stores to become automated within three years, and that in the next few years over half of its fulfillment center volume will be moved through automated processes, the company announced at its latest Community Investment meeting.
“By the end of Fiscal Year 2026, Walmart believes roughly 65% of stores will be serviced by automation, approximately 55% of the fulfillment center volume will move through automated facilities, and unit cost averages could improve by approximately 20%,” the company shared at its 2023 Investment Community Meeting.
“We are in a unique position to serve our customers and members however they want to shop, which will fuel continued growth,” said Doug McMillon, Walmart president CEO, said in the same press release. “As we grow, we will improve our operating margin through productivity advancements and our category and business mix, and drive returns through operating margin expansion and capital prioritization.”
“It all starts with our associates,” McMillon added. “We are a people-led, tech-powered omnichannel retailer. As it relates to being people-led, it’s about purpose, values, culture, opportunity and belonging. We serve our associates by creating opportunities. Opportunities that turn jobs into careers. We help bring dignity to work by enabling them to see how they’re serving others, as part of a team, and helping them achieve their potential. And as we serve them, they serve our customers and members well…they make the difference.”
The application of technology in Walmart stores is certainly not a novel concept; any shopper will have noticed that many check-out lanes were long ago replaced by self-service kiosks. But the rise of automation goes far beyond just self-checkout.
“Walmart showcased its supply chain innovation Tuesday at its Brooksville, Fla., regional distribution center, as one piece of how the company is building a scaled system of supply chain capabilities that uses a combination of data, software and robotics,” the press release continued.
“Through automation and state-of-the-art technology, the company illustrated how the increased item storage allows the distribution center to provide a more consistent, predictable and higher quality delivery service to stores and customers and react more quickly to customer demand,” it added.
Naturally, the focus has been on improving the company’s bottom line and better serving customers with both speed and lower costs. These are good things. Of course, the unspoken trade-off is that the development of artificial intelligence and automated processes means millions of employees could be out of work if their roles are no longer required.
In an article posted by the Daily Wire about Walmart’s next-generation pivot, many comments pointed out that the use of technology, while perhaps inevitable to a degree, is also the result of misguided and failed economic policies.
“I don’t like seeing people complain about self check out, because I actually like it, but I NEVER want to see a democrat complaining about Walmart only having two open registers, long lines, or self check out. You wanted this when you asked for $15 minimum wage,” one user wrote.
“This is what happens when you pay People to not work (Covid lockdowns), tell them “they deserve more”, minimum wage. Milton Friedman or Thomas Sowell said it best the Minimum Wage is $0.00 when no jobs are left,” another said.
“The issue with self checkout is that it isn’t really automation. A fully automated system would do the job of the checker – scanning and loading bags. Self checkout just outsources the work to you the customer,” a third accurately described.
“Yeah, what did people expect? If you can’t offshore your unskilled labor, then you have to look to automation. Automation doesn’t skip shifts because they partied too hard. Automation doesn’t file harassment lawsuits. Automation doesn’t strike demanding higher wages. Automation doesn’t come with a need to pay Social Security or Medicare taxes or need medical benefits.
“With labor shortages because Gen-Z’ers are too lazy to work and when they do work, many of them do it poorly. They randomly don’t show up and then when they do, they expect to still have a job because of labor shortages, or they regularly show up late, etc. Why not replace them with automation wherever possible? I certainly would if I ran these stores,” another ranted.
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