Retail giant Walmart Inc. (WMT) is planning to launch four new fulfillment centers. These high-tech centers will be located in Greencastle (Pennsylvania), Joliet (Illinois), and McCordsville (Indiana).
The facilities, ranging from 1.1 million to 2.2 million square feet in area, are scheduled to open between 2022 and 2024 and will offer consumers and Walmart+ members, with next or two-day shipping on items.
The state-of-the-art technology centers are expected to ramp up the retailer’s speed of fulfillment.
Senior Vice President, Automation, and Innovation at Walmart, David Guggina, commented, “Our new next-generation fulfillment center is a first-of-its-kind for Walmart that will transform the way we ship online orders to customers. Through our automated storage systems and patent-pending five-step process, we will not only provide increased comfort for associates but also double the storage capacity and double the number of customer orders we are able to fulfill in a day.”
The move is part of Walmart’s drive to modernize its supply chain network and ready itself for the growth of digital businesses. Additionally, the selected locations are strategically placed from transportation and logistics networks as well as the biggest metros.
Evercore ISI’s Greg Melich has reiterated a Hold rating on the stock alongside a price target of $135.
Overall, the Street has a Strong Buy consensus rating on the stock based on 22 Buys, and five Holds. The average Walmart price target of $157.11 implies a potential upside of 23.21%. That’s after a 16.4% slide in its share price over the past month.
Bloggers Are Sticking With Walmart
TipRanks data indicates blogger sentiment about Walmart remains Bullish. Additionally, 90% of bloggers are Bullish on the stock, compared to the sector average of 65%.
Walmart is taking major steps to boost its supply chain. The expected 100% increase in storage capacity and order fulfillment should bear fruit in the coming months.