Walmart Strikes Deal to Further Automate E-Commerce Operations
Walmart has made a deal to sell its Advanced Systems and Robotics business to Symbotic, Inc., an AI-enabled robotics technology company that focuses on the supply chain. As part of the deal, Symbotic will help Walmart develop, build and deploy an advanced robotics platform solution that will accelerate online pickup and delivery options at stores.
The acquisition by Symbotic adds a new product category for the company, and will help it address the need for automated fulfillment of customer orders at the local and store level. Walmart will purchase and deploy 400 of Symobtic’s accelerated pickup and delivery centers (APDs) at stores over a multi-year period, with an option to add more in the coming years.
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“This is a highly strategic transaction for Symbotic as we expand upon our long-term relationship with Walmart and broaden our product offering beyond the traditional warehouse to e-commerce settings for last mile delivery,” said Rick Cohen, chairman and CEO of Symbotic.
According to Symbotic, total consideration for the acquisition is $200 million in cash at close, and up to $350 million in additional consideration depending on the quantity of APD systems ordered by Walmart.
The two companies have worked together since 2017, with Symbotic currently deploying its software and robotics platform across all of Walmart’s 42 regional distribution centers in the United States.
“We’re excited about what this means for our customers. We anticipate the synergy between Symbotic’s expertise and our nearly decade-long relationship in innovating the supply chain technologies to elevate customer service and rapidly advance our in-store Accelerated Pickup and Delivery capabilities,” said Greg Cathey, SVP of transformation and innovation at Walmart.
Each week, approximately 255 million customers and members visit Walmart’s more than 10,500 stores and numerous e-commerce websites in 19 countries. With fiscal year 2024 revenue of $648 billion, the retailer employs approximately 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. is No. 1 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
