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Walmart enters $500 million-plus robotics deal with Symbotic

Walmart RDC automation
Symbotic technology has helped Walmart automate distribution centers.

A long-time Walmart automation partner is taking over the discounter's robotics operation.

Walmart has chosen artificial intelligence-enabled robotics technology provide Symbotic Inc. to take over its advanced systems and robotics division. Building on a long-standing partnership between the two companies (see more below), this new agreement will see Symbotic engage in a development program funded by Walmart to enhance current online pickup and delivery fulfillment systems, as well as to design new systems to help develop an integrated and automated supply chain.

As part of the deal, Walmart has committed to purchasing and deploying systems for 400 accelerated pickup and delivery centers (APDs) at stores over a multi-year period, with Walmart’s option to add additional APDs in the coming years. 

Associated with this development program, Walmart will pay Symbotic a total of $520 million, including $230 million at closing. Symbotic will also design new systems if performance criteria are achieved.

“We’re excited about what this means for our customers,” said Greg Cathey, senior VP 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 APD capabilities.” 

According to Symbotic, this transaction and new agreements could increase its future backlog by more than $5 billion. The acquisition is anticipated to close in Symbotic’s fiscal second quarter of 2025. Citi served as financial advisor to Symbotic.

“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 e-commerce settings for last mile delivery,” said Rick Cohen, chairman and CEO of Symbotic.

Walmart and Symbotic automate regional distribution centers

Walmart and Symbotic have been engaged in long-term efforts to equip the retailer’s entire regional distribution center network with robotics and software automation.

In September 2024, Walmart said it plans to install high-tech automaton from Symbotic in two of its regional distribution centers (RDCs) – one in Buckeye, Ariz., and another in Searcy, Ark.   

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Both projects will be completed in phases over several years and are part of a broader RDC initiative the discount giant launched in July 2021 and extended to include all 42 RDCs in May 2022.  

[READ MORE: Walmart expands regional distribution automation strategy]

According to Walmart, the new technology enables it to double the number of cases processed per hour compared to a traditional RDC. By the end of 2025, the retailer expects that roughly 65% of its stores will receive merchandise from high-tech distribution centers. 

Walmart’s RDC automation initiative is part of broader digital transformation effort in its supply chain aimed at increasing the speed, efficiency and safety at which products are distributed. 

Since 2017, Walmart has worked with Symbotic to optimize an automated technology solution to sort, store, retrieve and pack freight onto pallets in its Brooksville, Fla. distribution center. 

Under Walmart’s traditional manual system, product arrives at one of its RDCs and is either cross-docked or warehoused, while being moved or stored manually. When it’s time for the product to go to a store, a 53-ft. trailer is manually packed for transit. After the truck arrives at a store, associates unload it manually and place the items in the appropriate places.

With automation provided by the Symbotic solution, an algorithm determines how to store cases like puzzle pieces using high-speed mobile robots that reduce the time of the intake process and increase the accuracy of freight being stored for future orders. 

This solution uses a combination of AI-powered software systems, robotics and automation to sort, store, retrieve and pack merchandise onto pallets which are then shipped to stores. The solution is designed to get products onto shelves quicker.

According to Walmart, the system transforms existing RDCs into high-density, automated facilities that provide faster product intake, increased inventory accuracy and a 2X increase in building capacity. The RDC transformation model is designed to save store associates time by creating store- and aisle-ready pallets, which take the guesswork out of unloading trucks.

Headquartered in Bentonville, Ark., Walmart Inc. operates more than 10,500 stores and numerous e-commerce websites in 19 countries.

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