WALMART is opening a new kind of store that will be unavailable to customers, but will fulfil a crucial part of the chain’s operation.
In an Amazon copycat move, Walmart is testing out so-called “dark stores” that will better connect customers to their items.
Walmart is opening a new kind of store that will be unavailable to customers, but will fulfil a crucial part of the chain’s operation[/caption]
Walmart is now testing a new store format that will exclusively act as warehouses for online orders.
The format is currently being piloted in Dallas, Texas, and is there to speed up online ordering for customers.
These dark stores will not be open to the public, instead they will be a vital part of Walmart‘s plans to expand its footprint.
These stores will carry some of the retailer’s most popular products.
Bloomberg also reports that another location is planned for Bentonville, Arkansas, Walmart’s hometown.
Walmart believes that with the help of dark stores, the company will be able to reach 95% of the U.S. population with delivery options of three hours or less.
The number of deliveries in under three hours grew by 91% in the first quarter compared to the year-ago quarter.
A spokesperson for Walmart told Retail Dive: “We regularly test new tools, features, and capabilities to better connect with and serve our customers — wherever and however they choose to shop.
“Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience.”
Walmart has been building up to a store format like this, all aiming at improving delivery speeds.
Notably, the chain has been using drone technology to achieve this.
DELIVERY COSTS
A large part of it is due to pricing, as well, as Walmart‘s net delivery costs have declined.
The retailer has also given shoppers the option to pay for faster deliveries in the past, per CFO John Rainey.
The chief has hailed the dark store development as as “important milestone for our company”, after it achieved e-commerce profitability for the first time in the first quarter of 2025.
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Walmart has been reporting strong revenue growth so far this year, hitting a 2.5% year over year revenue milestone of $165.6 billion.
While new tests like the dark stores aim to further reduce costs, Walmart has acknowledged the uncertainty of tariffs.
CEO Doug McMillion said previously: “We’re positioned to manage the cost pressure from tariffs as well or better than anyone.
“But, even at the reduced levels, the higher tariffs will result in higher prices.”
As Walmart embraces new ways of delivery, it is also cutting humans from that equation.
In the US, the retailer recently cut 1,500 jobs as a way to further streamline its operation.
These cuts were primarily felt in the retail teams, as well as in the global tech side of the company.
Walmart is now testing a new store format that will exclusively act as warehouses for online orders[/caption]
