Walmart has officially opened its fifth next-generation fulfillment center, expanding its automated e-commerce logistics network with a new facility in Stockton, California. The 900,000-square-foot site is designed to increase online order-processing capacity and accelerate shipping and delivery for customers across the West Coast.
Announced on Thursday, the opening marks another step in Walmart’s efforts to strengthen its digital retail operations through advanced automation and technology. The new center also supports Walmart Fulfillment Services, the retailer’s end-to-end fulfillment offering for third-party sellers, by handling orders for products sold through its Marketplace platform.
Automation streamlines order fulfillment
The Stockton facility combines advanced automation, artificial intelligence-powered systems and high-density storage technology to improve the movement of goods throughout the building.
At the heart of the operation is a high-density storage and retrieval system that reduces the traditional 12-step fulfillment process to just five steps. By limiting repetitive manual tasks and streamlining product handling, the technology is intended to increase operational efficiency while expanding storage and order-processing capacity compared with conventional fulfillment centers.
Walmart, traded on the Nasdaq under the ticker WMT, said the facility’s location in California’s Central Valley brings fulfillment capacity closer to customers across the West Coast. This additional capacity will help the retailer offer faster shipping on millions of items while easing pressure on other facilities across its distribution network.
A growing network of next-generation centers
Stockton joins four other next-generation fulfillment centers already operating in the United States. These facilities are located in Joliet, Illinois; McCordsville, Indiana; Greencastle, Pennsylvania; and Lancaster, Texas.
According to Walmart, the strategically positioned network enables next-day or two-day shipping to 95% of the U.S. population. The company is continuing to expand this infrastructure as online shopping becomes an increasingly important part of its business.
E-commerce now accounts for 23% of Walmart’s total sales. The retailer has previously highlighted faster delivery as a key factor encouraging customers to place online orders, making fulfillment speed an important component of its digital growth strategy.
$1.3 billion investment backs Georgia growth
Walmart is also getting ready to expand its next-generation logistics network with a sixth e-commerce fulfillment center in Carnesville, Georgia.
The planned facility, announced in August, will be 1.5 million square feet, much larger than the new Stockton center. Construction is expected to start in late 2023. Walmart said it will invest a total of $1.3 billion in the project, including hiring costs.
The facilities are expected to create more than 1,000 jobs when fully operational, demonstrating the workforce impact of Walmart’s continuous investment in its fulfillment infrastructure.
Why does it matter
Walmart is growing as it vies with Amazon, Target and other big retailers for more of online spending. Faster fulfillment and delivery can improve the customer experience and incentivize shoppers to complete purchases on digital channels.
“Walmart is deploying AI-enabled technology, automated storage systems and strategically located facilities to increase order capacity, reduce delivery times and strengthen its position in the growing competitive e-commerce market.
