You must be aware that Walmart is one of the best traditional commerce platforms in the US and it is also located in multiple cities in the US with a footfall of billions every year. However, the fact that we hear so much about Amazon these days being the leader in the US is because of the e-commerce sector where Walmart arrived late and Amazon had already made a mark in this area. It is worth noting, though, that Walmart is trying very hard to get back to its feet and get the numero uno position in the US in e-commerce sector as well.
Talking about the efforts, Walmart has now revealed that it aims to get 65% of its fulfillment facilities automated by the year 2026. It means that in the next 3 years, majority of Walmart’s fulfillment facilities will work on its own and will not require major human intervention. However, this also tells you that the need for Walmart workers will decrease in the coming years as well. Right now, Walmart is the biggest employer in the US because of its physical stores all around the country along with its e-commerce division as well.
Walmart is going to have its annual investor meeting in Tampa, Florida soon and this is also the reason why such an announcement was made so as to prepare its investors for what it coming during that meeting. Walmart did not mention if they are going to announce more layoffs followed by this automation announcement but the company did mention that this change will reduce the need for lower-paid roles.
In a filing, Walmart revealed that “As the changes are implemented across the business, one of the outcomes is roles that require less physical labor but have a higher rate of pay. Over time, the company anticipates increased throughput per person, due to the automation while maintaining or even increasing its number of associates as new roles are created”. An analyst looking at Walmart’s stocks said that “This increased efficiency will not only support better inventory management, but it will also support Walmart’s rapidly growing e-commerce business”
