Walmart is scaling the number of stores that will serve as local fulfillment centers. The local fulfillment center is a compact, modular warehouse built within, or added to a store. In addition to fresh and frozen items, LFCs can store thousands of other items from consumables to electronics. The retailer is planning dozens of locations, with more to come.
Walmart began piloting its first local fulfilment center in Salem, New Hampshire in 2019 and it has resulted in increased availability, faster fulfillment, and greater efficiency for customers and employees.
“We’ll be building local fulfillment centers with various technology partners, including Alert Innovation, Dematic, and Fabric,” said Tom Ward, SVP of customer product at Walmart U.S., in a statement. “With these partners, we’ll be testing different orientations and add-on innovations to understand what works best in different environments. For example, in some locations, we’ll be adding on to our stores. In others, the fulfillment centers will sit inside the existing store footprint. Finally, in some stores, we’ll be adding automated pickup points. Think of it as the ultimate convenience that allows customers and delivery drivers to drive up, scan a code, grab their order and go.”
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