Walmart Sees 65% Of Store Automation By FY26 End; Affirms FY24 Guidance

Walmart Inc WMT believes roughly 65% of its stores will be serviced by automation by the end of fiscal year 2026.
The company said about 55% of the fulfillment center volume will move through automated facilities, and unit cost averages could improve by approximately 20%.
The remark comes just days after the news about reducing 2,000 positions at its e-commerce warehouses.
"As the changes are implemented across the business, one of the outcomes is roles that require less physical labor but have a higher rate of pay," the company said in a statement.
Outlook: The retailer also reaffirmed its FY24 sales growth guidance of 2.5% to 3% and Q1 guidance of 4.5% - 5% growth in CC.
Walmart will outline how the company expects its growth investments to transform its financial profile in its two-day 2023 investment community meeting.
John David Rainey, Walmart executive vice president and CFO, said, "Looking at where we are today, we believe that approximately 4% sales growth, and growing operating income at a faster rate, are still the appropriate targets for our business over the next 3-5 years."
Price Action: WMT shares closed lower by 0.98% at $147.23 on Tuesday.