A new $8 million permit at Walmart’s New Braunfels, Texas distribution center is the latest step in an automation overhaul that now covers half its regional network. Walmart has 23 of its 42 regional DCs in active retrofit. The company is upgrading warehouses it already owns to move more volume with fewer manual touches.
What the filing shows: The Texas permit covers a 96,715 sq ft phase that includes new material handling equipment, electrical work, and fire suppression. It represents one phase of one DC, and the $8 million reflects only a portion, not the total project cost. Walmart declined to comment.
What they’re installing: The retrofits add high-throughput systems that sort, store, retrieve, and pack freight with far less manual handling. The upgrades are built largely on Symbotic’s robotics and AI software. Walmart sold its advanced systems and robotics business to Symbotic, which has been deploying its platform across all 42 regional DCs for years, and later signed a new commercial agreement covering store-level fulfillment centers.
By the numbers: Walmart’s latest disclosures show how far the program has run:
23 of 42 regional DCs in active retrofit
More than 60% of US stores served by automated DCs
Roughly half of fulfillment center volume automated
Automated fulfillment centers are about twice as productive as legacy ones, according to EVP David Guggina
The brownfield logic: Retrofitting existing DCs that already serve stores reduces capital risk compared with building greenfield sites from scratch. Kroger recorded about $2.6 billion in impairment and related charges while exiting its Ocado automated greenfield fulfillment centers. An amendment confirmed a roughly $350 million cash payment to Ocado to walk away.
What it costs: Spending varies widely by site, from the $8 million New Braunfels phase to a more than $330 million overhaul at Opelousas, LA that Walmart says will double that center’s shipping capacity. CEO John Furner said supply chain capital spending will “probably peak this year and next year.”
