Walmart Supply Chain Automation Drives Efficiency in Q3 2025
Automation investments cut costs and lift productivity across U.S. stores and e-commerce fulfillment centers.
Walmart’s third-quarter fiscal year 2025 update highlights substantial gains in operational efficiency as automation scales across distribution and fulfillment operations in the U.S.
Automation Footprint: Stores and Fulfillment
Walmart reports that more than 60% of its U.S. stores now receive inventory from automated distribution centers, and over half of its e-commerce fulfillment volume is processed through automated systems.
Cost and Productivity Gains
Executive Vice President and CFO John David Rainey noted that shipping costs have fallen consistently—by around 30%—for multiple quarters. In Q3, Walmart again recorded double-digit reductions, improving e-commerce unit economics and helping lower overall selling, general, and administrative expenses.
Fulfillment Centers Lead the Way
David Guggina, Walmart U.S. chief e-commerce officer, emphasized that automation is most advanced at fulfillment centers, which are delivering roughly twice the productivity of traditional facilities. These sites continue to evolve as more robotics and automated processes come online.
Automation deployment is furthest along at our fulfillment centers—already delivering double the productivity versus traditional facilities.
Network Expansion and Footprint
Since 2022, Walmart has rolled out next-generation fulfillment centers equipped with advanced automation, with further expansion planned in the coming year. The company’s latest annual report notes it currently operates 29 dedicated e-commerce fulfillment facilities.
Store-Fulfilled Deliveries Gain Momentum
Physical stores remain central to Walmart’s evolving fulfillment model. In Q3, the company saw a nearly 50% increase in deliveries fulfilled directly from stores. About 35% of these orders reached customers within three hours—consistent with prior quarters.
Outlook
Walmart’s expanding automation across distribution and fulfillment is improving responsiveness to customer demand while tightening control over logistics and shipping costs. As additional robotics and automated technologies scale, the company aims to build on these gains and further strengthen its competitive position in retail and e-commerce.
Headline: Walmart’s Automation Upgrades Drive Efficiency Gains in Q3 2025
