Walmart bets big on logistics, announces construction of fifth high-tech distribution center

It is learned that since Walmart announced plans to open four high-tech distribution centers in June 2022, Walmart recently announced that it will open its fifth high-tech distribution center in 2026. The distribution center will be located in Stockton, California, with an area of ​​900,000 square feet and use a highly automated warehousing and sorting system.

Last June, when Walmart announced that it would open four "next-generation" distribution centers, it said the centers would use an automated, high-density warehousing and sorting system developed in cooperation with Knapp that would reduce the original 12-step distribution process to five.

Walmart also emphasized that these four distribution centers will be able to provide next-day or two-day delivery services for millions of items to 75% of the US population. Combined with its traditional distribution centers, Walmart will be able to provide next-day or two-day delivery services to 95% of the US population.

Walmart opened its first "next-generation" distribution center in Joliet, Illinois, last September, followed by a second in June in McCordsville, Indiana, about 20 miles from Indianapolis. A third is reportedly set to open this fall in Lancaster, Texas, and a fourth is expected to open next year in Greencastle, Pennsylvania.

The newly announced fifth high-tech distribution center is an unplanned move for Walmart, but it also demonstrates Walmart’s confidence in such distribution centers and its determination to improve its logistics and distribution capabilities.

It is reported that the new distribution center is designed to help Walmart process its e-commerce orders throughout California and the West Coast more quickly and efficiently. In California, Walmart currently has 8 distribution centers, 4 distribution centers and 309 retail stores. According to the announcement, the upcoming factory will require more than 1,000 workers.

A Walmart spokesperson pointed out that the increase in the number of high-tech distribution centers is aimed at meeting the growing demand for e-commerce shopping. In addition, physical stores remain a key part of Walmart's e-commerce distribution strategy. It is reported that in the second quarter of this year, the "double-digit" growth of store pickup and delivery drove Walmart's e-commerce sales in the US market to grow by 24%.

Editor✎ Ashley/

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