Walmart is investing in warehouse technology

US retail giant Walmart plans to invest heavily over the next year in a more automated e-commerce fulfillment environment.

The company told analysts this week it intends to invest nearly USD14 billion in the 2022 financial year "to build supply chain capacity and automation to stay ahead of demand, improve the customer experience and increase productivity".

The company stresses that its strong financial position makes it the right time to accelerate investments in key areas, enabling it to grow faster while leveraging its unique assets to build a business model that will define the next generation of retail.

Walmart details an integrated omnichannel strategy, focusing on innovating to enhance a seamless, digital customer experience designed to deepen customer relationships and increase share of wallet.

The strategy also covers deploying capital to priority areas such as "capacity and automation in DCs, FCs and market fulfillment centres to accelerate sales and profit growth".

CEO Doug McMillon told analysts Walmart's automation plan "is now ready to scale".

"We'll be investing in our distribution centres, our e-commerce fulfillment centres and in market fulfillment centres, which will, in many cases, be inside of or built beside our stores."

McMillon said his company is limited in how much it can pick and deliver from stores. "The automation that we're investing in will help change that," he added.