Ep. 10 - The Future of Retail - with Kim Souza

The Doing Business in Bentonville Podcast

During Walmart's annual Shareholder Week, the company pulled back the curtain on its latest technological initiatives designed to revolutionize the retail landscape. One of the highlights was the unveiling of its Market Fulfillment Center (MFC) at Store 100 in Bentonville. This center employs proprietary Alphabots that navigate a large vertical storage tower to retrieve items for online orders. Human workers then pack these items, and the system is designed to increase the capacity for online ordering, thereby relieving pressure on physical stores.

In addition to the Alphabots, Walmart showcased its drone delivery system, which has been operational for about a year. The drones can carry up to 10 pounds and operate within a one-mile radius from the store, all for a $3.99 fee. This service is part of Walmart's broader strategy to offer more delivery options to consumers, although it currently requires the use of a separate app and is not integrated into Walmart's main website.

Walmart is also making strides in artificial intelligence with its generative AI (Gen AI) technology. This AI is used in various applications, including shopping assistants and operational help within stores. The technology aims to enhance the shopping experience and improve operational efficiency, signaling Walmart's commitment to integrating advanced technology into its business model. The company believes that these innovations will set the stage for the future of retail, blending the digital and physical shopping experiences seamlessly.