Walmart is selling its robotics business to a technology partner to accelerate the development of automation technology for its fulfillment operations.
Since 2017, Symbotic has been working with Walmart to automate the retailer’s supply chain. The company is currently deploying its software and robotics platform at Walmart’s 42 regional distribution centers across the U.S.
The agreement between Walmart and Symbotic has a 12-year term, according to a January 15 securities filing. The technology developed for Walmart during this period will be exclusive to the retailer. However, Symbotic expects to offer the technology to the wider retail market after the exclusivity period ends.
Walmart plans to use miniaturized automation systems in the back rooms of stores to fulfill individual customer orders for pickup or last-mile delivery. This is part of the retailer’s strategy to scale up its use of automation, which has been a major focus of its supply chain transformation over the past decade.
In 2024, Walmart automated distribution centers in Arizona and Arkansas and announced plans to add five more automated centers to its grocery supply chain. The company also implemented autonomous forklifts at four distribution centers in Florida, Texas, New York, and Alabama.
By the end of the year, Walmart expects 65% of its stores to receive products from high-tech distribution centers. The company has seen improvements in delivery efficiency, reducing U.S. net delivery costs per order by 40% in its most recent fiscal quarter, largely attributed to its continued investment in automation technology.
Walmart’s executive leadership has identified the automation of its supply chain as a key factor driving these operational improvements.
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