Over the last few years, the retail business has been growing to become a very important part of the market. Companies such as Amazon, Kroger and Walmart have evolved with their services due to the competition between them. In their product deliveries, they have turned to automation to increase capacity and speed.
Amazon facilitates one-day delivery of products to its customers with Prime membership. To do this, it acquired Kiva Systems a decade ago, creating wheeled robots for its warehouses to maintain efficiency without exploiting its workers. Kroger partnered with British online store, Ocado, and began opening large robotic fulfillment centers in the United States. On the other hand, Walmart is opening four new high-tech distribution centers to increase speed in deliveries.
These centers are expected to open between 2022 and 2024, with locations in Greencastle (Pennsylvania), Joliet (Illinois) and McCordsville (Indiana). The facilities will be between 1.1 and 2.2 million square feet. Customers with a Walmart+ membership, as with Amazon Prime, will receive their deliveries within one day, with a maximum of two.
Walmart’s Vice President of Automation and Innovation, David Guggina, gave statements with reference to these new centers. He said, “Our new next-generation fulfillment center is the first of its kind for Walmart that will transform the way we ship online orders to customers.” This new method is expected to double the number of deliveries in a day, with the potential to win more customers.
The locations of the new centers were strategically selected for reasons of logistics and transportation networks for the company. Walmart plans to modernize its supply chain network and is preparing for the imminent growth of digital business.
Walmart stores will continue to play their role within the company’s supply chain, handling orders focused on frozen and refrigerated grocery products. Meanwhile, orders with a wider variety of products will be the task of the new distribution centers.
According to Wall Street analysts, Walmart’s stock has a “Strong Buy” rating, with 22 “Buy” suggestions out of a total of 27 experts asked. The average price target of WMT is $157.11, which has a potential to increase 23.21%. That is, after a 16.4% drop in its share price over the past month.
Walmart is renewing itself and making important decisions for the future. Its intentions are focused on the expansion and growth of the company, which would drive its stock upwards.
Do you think it is a good time to invest in Walmart? Do you think there will be a difference in service with the new distribution centers?
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