Walmart Canada announced a major $3.5 billion investment over the next five years aimed to generate significant growth and to make the online and in-store shopping experience simpler, faster and more convenient for Walmart’s customers.
The investment will impact every aspect of the business leading to a faster e-commerce experience, two new distribution centers to speed up the flow of products, re-invented and smarter stores, an enhanced omni experience and modern digital tools to ensure associates can best serve customers.
As Walmart Canada’s business grows — especially with grocery and e-commerce picking up significant momentum — the company said it will not compromise on offering the everyday low prices customers trust — both online and in-store.
The investment will also create hundreds of Canadian construction jobs and forge new partnerships with Canadian technology companies.
Reinvented, modernized “stores of the future”:
- Renovating over 150 stores over the next three years — over one-third of the store network
- New investments are in addition to over $1 billion invested into remodeling and opening stores over the past five years
- Accelerating digitization to create “smarter stores”, including:
- Expanded electronic shelf labels, shelf scanners to monitor product volumes, robotics and computer vision cameras to simplify, minimize touches and maximize efficiency and accuracy
- A new checkout experience to reduce touchpoints, including tap-to-pay, new bigger self-checkout and “Check Out With Me” mobile payment technology to allow associates to checkout customers anywhere in the store
Accelerating the omni offering for customers and creating thousands of new omni associate jobs:
- Expanding the full “Walmart Pickup” offering to approximately 270 stores – or 70% of locations – by end of 2020
- Piloting “hybrid locations” – supercenters with “micro fulfilment center” in their backroom to increase the speed of fulfilment for pickup and delivery
- Investing in new technology to:
- Accelerate the pickup experience, including advanced notification
- Improve fulfilment center operations to increase speed and trackability
Investing $1.1B to build two new distribution centers and renovating an existing distribution centre creating hundreds of construction jobs:
- Vaughan, ON: A next generation 550,000 square foot distribution center at 11110 Jane Street (400 Highway and Teston Road) slated to open in 2024: The facility will leverage next generation automation and technology working with Vanderlande
- Surrey, BC: New 300,000 square foot distribution center currently under construction at 19500 26th Ave slated to open in 2022: Working with Witron on the site’s distribution logistics technology
- Cornwall, ON: New automated systems in an existing distribution center to manage apparel, health and beauty, and other small general merchandise items slated to go live in early 2021: The systems will feature machine learning, Cobot Technology which can work in concert with associates to improve the accuracy and efficiency of operations
Ramping up capacity in its distribution center system through new leading-edge technologies:
- New next-generation warehouse management systems which are omni capable in meeting the future needs of both physical stores and e-commerce
- Investing in telematics and “internet of things” sensors across over 2,200 trailers to give real-time information around the quality and freshness of its deliveries
- Launching world-leading artificial intelligence software in partnership with o9 to more accurately predict and better plan volume to ensure Walmart’s customers get what they want, when they want
- Scaling the blockchain transportation payments platform with Toronto based DLT Labs – the world’s biggest blockchain solution for transportation payments system
- Using new machine learning training software to support improved training and safety on the front lines of distribution center and fleet operations with Axonify, a Waterloo based micro-frontline learning company.
