Walmart will automate store and warehouse management in the next 3 years

In addition to announcing the expansion of electric vehicle applications, Walmart, during a recent investor conference, revealed plans to implement store and warehouse automation management within the next three years, while emphasizing a continued focus on a people-centric approach.

According to Walmart, the company aims to achieve 4% sales growth and over 4% revenue growth within 3-5 years following the 2024 fiscal year. Pursuing large-scale automated management, Walmart anticipates that by the 2026 fiscal year, 65% of sales channels will be serviced by automated equipment, with approximately 55% of warehouse goods processed through automation, potentially reducing per-unit operating costs by an average of 20%.

Photo by Marques Thomas on Unsplash

Although Walmart is increasing its focus on automation, the company insists it will remain people-centric and not substantially replace traditional labor.

Nevertheless, the transition process will be accompanied by staff reductions and layoffs. Walmart recently announced a workforce reduction of over 2,000 employees—a relatively small number compared to its 1.7 million domestic workforces and over 60,000 global employees—but as automation continues to expand, many believe Walmart will streamline even more staff in response to market changes.

Not only Walmart but also Amazon is currently focusing on automating its operations, including replacing some human labor with artificial intelligence technology and integrating more robots into warehouse systems to address efficiency issues. This shift may also result in further staff reductions and adjustments.

Recent data from Goldman Sachs suggests that approximately two-thirds of jobs in the United States and Europe are at risk of being replaced by artificial intelligence and automation, with generative AI potentially supplanting a quarter of all jobs globally, affecting around 300 million full-time positions.