Walmart agreement with Symbotic marks 'one of the most ambitious moves in retail automation'
Earlier this year, Symbotic's shares jumped upon the announcement that it would buy Walmart's robotics business for $200 million as part of an agreement to expand the retailer's automated supply chain.
The company said it would use its AI enabled robotics platform to improve operations at the US retail giant's pickup and delivery centres.
Walmart is funding the development programme and will pay Symbotic $520 million, including $230 million at closing, for the new agreement that includes an initial order to cover hundreds of stores.
It's one of the most ambitious moves in retail automation to date, according to Brittain Ladd, a supply chain consultant and former Amazon executive.
In a LinkedIn post, he said: "There is a lot of misinformation floating around regarding Symbotic and its micro-fulfillment centre project with Walmart. To clarify the status of the project, I contacted Charlie Anderson, VP of Investor Relations at Symbotic. Charlie was extremely helpful in providing me with the facts."
"At stake: reshaping how online orders are fulfilled, how inventory is managed, and how Walmart uses its biggest advantage - its 4,700 US stores within ten miles of 90% of Americans. By turning stores into automated fulfillment engines, Walmart can promise faster delivery and cheaper pickup while leveraging existing store inventory."
"Symbotic’s new next-generation storage structure will increase density, reduce installation times, and support micro-fulfillment as well as distribution centres and perishables. Rick Cohen, Symbotic’s CEO, confirmed that prototype installs of the Gen-2 platform will begin in early 2026."
"Agreed upon KPIs must be achieved for additional installations to happen. Online grocery fulfillment will only be profitable through automation."
Ladd observed that Amazon continues to push same-day grocery expansion, raising service expectations. Kroger is layering Ocado customer fulfillment centres (CFCs) with new partnerships like DashMart Fulfillment Services, a hybrid model blending centralised automation with rapid delivery.
DashMart is a service via DoorDash. DoorDash, according to Ladd, has the potential to severely disrupt the online grocery fulfillment industry with DFS. It’s possible that it may form a strategic partnership with the Ocado Group, he believes.
He adds: "Walmart’s online grocery fulfillment strategy is different: make the store itself the fulfillment hub. It’s a bold way to exploit the company’s physical footprint, reduce last mile costs, and accelerate online grocery profitability."
"But here’s the big strategic question: Does Walmart eventually need its own Ocado like backbone of regional CFCs to complement in-store automation? For large basket orders and regional efficiency, the hybrid model could make sense down the line."
For now, Walmart is doubling down on Symbotic to redefine what store automation can do.
"If successful, this roll-out could become the blueprint for how retailers globally use automation not just to cut costs, but to enable growth," Ladd argued.
"I’m looking forward to seeing the next generation solution from Symbotic. However, I’m not convinced the system from Symbotic is the best solution for Walmart. I believe that Symbotic should assess an acquisition of Ocado Group. A combined Symbotic and Ocado, will create the largest grocery and retail automation company in the world. It would be a wise move for Symbotic."
2025 RTIH INNOVATION AWARDS
Automation will be a key focus area at the 2025 RTIH Innovation Awards.
The awards. which are now closed for entries with our finalists and shortlists being announced last week, celebrate global tech innovation in a fast moving omnichannel world.
Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”
He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”
“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”
Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering.
For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.
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