Dive brief:
- Walmart announced Wednesday a five-year plan to build or convert more than 150 locations while continuing its efforts to remodel existing stores. Over the next 12 months, the retail giant said it aims to remodel 650 stores in 47 states and Puerto Rico.
- Both new and remodeled Walmart stores will reflect the retailer’s “Store of the Future” concept, with improved designs, expanded product selections and innovative technology to support associates and make shopping trips more convenient, according to the announcement
- The store investments come at a time when Walmart has become a dominant force in the grocery industry, driving financial gains and growing market share.
Diving knowledge:
With this latest expansion and remodeling push, Walmart is looking to maintain the momentum it has built during this extended period of consumer price sensitivity.
A key piece of this strategy is to reactivate store growth. In a note posted on its website Wednesday, Walmart USA President and CEO John Furner said the company is “finalizing construction plans” for 12 new stores it plans to start building this year.
Neighborhood Markets in Santa Rosa Beach, Fla., and Atlanta will be the first locations to open later this spring as part of Walmart’s expansion initiative.
After years of breakneck expansion, Walmart’s store growth has slowed in recent years as it has focused more on investing in its existing locations. The company last opened a supercenter nearly two years ago, according to The Wall Street Journal.
Walmart said its expansion efforts will benefit communities by creating tens of thousands of jobs. Hundreds of jobs will be available upon each store opening, and positions include benefits such as tuition-free college, flexible scheduling, and competitive paid time off.
The newly opened and remodeled locations are also more sustainable than previous builds, with energy-efficient lighting and equipment, lower-impact refrigerants and more, according to the announcement. Walmart also noted that it is currently developing a coast-to-coast network of affordable electric vehicle fast-charging stations for its customers.
Walmart’s grocery business has helped boost the retailer’s sales and profits. During the third quarter of fiscal year 2024, Walmart saw average single-digit growth in groceries with CFO John David Rainey telling investors during the November earnings call that the category continues to post “strong” share gains in both units and dollars for the retailer.
Industry experts predict Walmart grows significantly by 2024. Jordan Berke, a former Walmart e-commerce executive founder and CEO of Tomorrow Retail Consulting, said in a recent interview that he expects the retailer to focus heavily on its express delivery service as well as its food categories and consumables
