WALMART is investing millions of dollars in pickup and delivery in a new agreement with a leading AI robotics firm.
The retailer is to work with Symbotic on developing, building and enhancing current and future online pickup and delivery systems in a $520 million deal.
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Symbotic will create a high-tech solution to automate 400 Walmart Accelerate Pickup and Delivery centers (APDs), with an option for more in future.
At the same time the Massachusetts-based company will acquire Walmart’s Advanced Systems and Robotics business for $200 million in cash, with up to $350 million more in future, depending on the number of systems ordered.
The acquisition is expected to close in the next few months.
Symbotic uses artificial intelligence and robots to automate warehouse systems and supply chains.
It has worked with Walmart since 2017 to automate the retailer’s supply chain.
“We’re excited about what this means for our customers,” said Greg Cathey, 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 the supply chain technologies to elevate customer service and rapidly advance our in-store Accelerated Pickup and Delivery capabilities.”
WHAT DOES THIS MEAN FOR CUSTOMERS?
The commercial agreement between the two companies should result in greater shopping convenience for customers, both in store and online.
Symbotic software and robotics platforms are already used in all 42 Walmart regional distribution centers across the country.
Extending the technology to the APDs will allow the retailer to “utilize its stores to fulfill ecommerce orders through pickup and delivery more efficiently, economically, and accurately”, according to the Symbotic website.
Commenting on the agreement, Rick Cohen, Symbotic chairman and CEO said:
“This is a highly strategic transaction for Symbotic as we expand upon our long-term relationship with Walmart and broaden our product offering beyond the traditional warehouse to eCommerce 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 Walmart is using a digital twin to plan store layouts.
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He explained the company is using AI technology to create a physically accurate twin of a store or distribution center.
The digital twin then allows staff members to simulate the different layouts and observe how they all work before anything is built.
Walmart is also introducing digital shelf labels to more than half of its stores.
These will update price changes instantly.
The company has been testing digital shelf labels for almost six years and plans to roll out the technology to 2,300 stores across the US by the end of 2025.
Walmart also launched its new-look 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.
