Walmart is making a major investment in a new Cibolo facility to strengthen its distribution network in Texas. According to a filing with the Texas Department of Licensing and Regulation dated Oct. 28, the retail giant plans to build a 744,433-square-foot distribution center at an estimated cost of $400 million.
The project will also include offices and construction is scheduled to begin in February 2027. The regulatory document said the plant was expected to be completed by Aug. 1, 2029.
Big bet during supply chain transformation
The planned development comes as Walmart has been making massive investments in its logistics and supply chain operations. The company said earlier this year that its supply chain spending could peak over the next two years given the scale of its ongoing modernization efforts.
Automating its distribution network is a key element of the strategy. Walmart wants to bring more high-tech into its operations, to boost productivity and make things simpler and also to cut shipping costs through better operational efficiency.
But the Texas regulatory filing does not say whether automation systems will be part of the new distribution center in Cibolo. Walmart did not return a request for comment before publication.
More Walmart network changes in Texas.
The Cibolo project isn’t the only infrastructure in the works by the retailer in the Lone Star State. Walmart also announced plans earlier this year for another round of renovations at an existing Texas distribution center, with work expected to start in August.
Other elements include partial demolition, installation of new electrical systems and material handling equipment and upgrades to the fire suppression and compressed air infrastructure. The project is 96715 square feet in size.
The upgrades are part of Walmart’s broader push to adjust its distribution facilities to changing operational needs, and to increase the efficiency of its logistics network.
Continued expansion outside of TX
Walmart’s investment strategy is also expanding to other areas of the United States, where the retailer is adding fulfillment capacity to keep up with increasing customer demand.
Earlier this month, the company opened a 900,000 square-foot next-generation fulfillment center in Stockton, Calif. The new site is being built to expand the retailer’s fulfillment capacity and increase service capacity to customers across the West Coast.
Walmart, in Georgia, announced a larger deal, a 1.5 million square foot fulfillment center. Construction of the facility is expected to begin in late 2026.
Taken together, the projects show the scale of investment Walmart continues to make in its distribution and fulfillment infrastructure. The retailer is trying to strengthen its national supply chain and improve operational efficiency by adding new facilities, upgrading existing ones and implementing automation.
