Walmart is planning to open dark stores to speed up deliveries, meet rising ecommerce demand, and support its drive toward profitable online operations.
Walmart is experimenting in the US with a new format known as “dark stores” – facilities designed to support faster delivery operations. Dark stores are essentially distribution hubs that mimic the layout of traditional retail outlets but are not accessible to customers.
It serves as a micro-distribution centre for employees to immediately fulfil online orders. It is used by fellow retail giants like Amazon and Whole Foods. The retail giant has launched a facility in Dallas, Texas, and plans to open another in Bentonville, Arkansas.
Walmart may consider expanding the initiative with additional dark store locations. The move is in response to growing customer demand for faster delivery services. A Walmart spokesperson said that the company remains committed to testing new capabilities to provide a seamless customer experience.
Walmart’s online business is expected to reach profitability in 2025, following substantial investments. The company has implemented measures such as order batching and warehouse automation to reduce costs.
In 2024, it broadened its online services to include the delivery of pharmaceutical products, allowing customers to receive medications alongside their grocery purchases.
The retailer also entered a collaboration with Rebag, a luxury goods reseller, to offer a selection of second-hand handbags, jewellery and accessories through its digital platform.
The dark stores reportedly carry Walmart’s most popular online items to help facilitate fast delivery. The retailer, which previously experimented with dark stores but stopped doing so following the lifting of COVID-19 pandemic restrictions, has been engaging in a variety of initiatives to speed up delivery.
These include expanding the use of drone delivery to new markets, as well as leveraging advanced geospatial technology to divide geographic areas into precise hexagonal grids for the purpose of optimising delivery zones.
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