WALMART is investing millions of dollars in pickup and delivery operations in a new agreement with a leading artificial intelligence robotics company.
The retailer will work with Symbotic to develop, build and enhance its existing and future online pickup and delivery systems in a $520 million deal.
1
Symbotic will create a high-tech solution to automate 400 Walmart Accelerate Pickup and Delivery (APDs) centers, with the option of more to come.
Meanwhile, the Massachusetts-based company will acquire Walmart's advanced systems and robotics business for $200 million in cash, with up to $350 million more to come, depending on the number of systems ordered.
The acquisition is expected to close in the next few months.
Symbotic uses artificial intelligence and robotics to automate warehouse systems and supply chains.
I have worked with Walmart since 2017 to automate the retailer's supply chain.
“We are excited about what this means for our customers,” said Greg Cathy, senior vice president of transformation and innovation at Walmart.
“We anticipate the synergy between Symbotic's expertise and our nearly decade-long relationship in innovating supply chain technologies to elevate customer service and rapidly advance our express in-store pickup and delivery capabilities.”
What does this mean for customers?
The commercial agreement between the two companies is supposed to provide greater shopping convenience for customers, whether in the store or online.
The token software and robotics platforms are already being used in all of Walmart's 42 regional distribution centers across the country.
Expanding the technology to include APDs will allow the retailer “to use its stores to fulfill e-commerce orders through pickup and delivery more efficiently, economically and accurately,” according to Symbotic's website.
Commenting on the agreement, Rick Cohen, Chairman and CEO of Symbotic, said:
“This is a very strategic transaction for Symbotic as we expand our long-standing relationship with Walmart and expand our product offering beyond traditional warehouses into e-commerce settings for last-mile delivery.”
This is the latest in a series of tech announcements from the retailer.
Just days ago, CEO John Furner revealed that Walmart is using a digital twin to plan store layouts.
How to sign up for Walmart+
*If you click a link in this box, we may earn affiliate revenue
Here's how to sign up for Walmart+:
- Go to Walmart's website.
- Select “Account” then “Walmart+”.
- Click “Start your 30-day free trial.”
- Enter your information.
- Enjoy the experience and benefits.
Remember to cancel before the 30 days are up, or pay $12.95 per month (which you can cancel at any time) or $98 for the annual plan if you want to keep it.
Read more
He explained that the company uses artificial intelligence technology to create a physically accurate twin of a store or distribution center.
The digital twin then allows employees to simulate different layouts and observe how they all work before building anything.
Walmart also offers digital shelf labels to more than half of its stores.
Price changes will be updated immediately.
The company has been testing digital shelf labels for nearly six years and plans to roll out the technology in 2,300 stores across the United States by the end of 2025.
Walmart also launched its new logo last week, the first update in 17 years.
However, the brand refresh did not go down well with many customers who couldn't tell the difference.
