Walmart building tech-powered perishable distribution center in South Jersey

Walmart is building a high-tech distribution center for fresh food in South Jersey.

Scheduled to begin operations in 2027, the 700,000-square-foot facility on Pointers Auburn Road in Pilesgrove is expected to bring 400 jobs to the region, the Bentonville, Ark.-based chain said.

The upcoming location will be Walmart’s fifth high-tech perishable distribution center. It is part of a broader effort by the big box retailer to transform the company’s massive grocery network.

Since 2021, Walmart has opened high-tech perishable distribution centers in California and Texas. It expects to launch locations soon in South Carolina and Illinois.

Collectively, the facilities will create about 2,000 new jobs. They’re also able to store double the number of cases and process more than twice the volume of a traditional facility, which helps Walmart more than double its hourly processing rate.

On-site technology includes a nearly 80-foot-tall storage structure accessed via automated lifts and conveyers, as well as de-palletizing robots and algorithms to determine optimal product placement.

Considered the largest grocery retailer in the U.S., Walmart’s network supports over 4,600 stores with a massive pickup and delivery business that continues to grow as customers seek convenience and value.

To support those operations, Walmart will expand four traditional distribution centers in Minnesota, North Carolina, Tennessee and Indiana by adding over 500,000 square feet of automation per site to boost capacity for fresh product.

Relying on the latest tech

Along with the new and expanded facilities, Walmart will also retrofit a perishable distribution center in Florida with the latest technology.

In a statement, Walmart Executive Vice President of Supply Chain Operations David Guggina said, “In the last several years, something has become very clear: Walmart customers love options. From the strength of our delivery business to our innovative aisles in-store and online, we’re witnessing shoppers make use of every opportunity to save money and live better.”

“As customers change the way they shop, we’re taking steps to build even more trust with them, ensuring the things they want and need are on shelves faster than ever before. To do that, we've been investing in data, increasingly intelligent software and automation all to transform our business and create a more connected supply chain,” he said.

Guggina went on to add, “We’re excited about what this technology will do for our business, but more than that, we’re excited about the opportunities it will create for associates. Technology is evolving physically demanding jobs into roles where associates are operating and maintaining high-tech systems, leading to an improved quality of life.”

Improving efficiencies

For Walmart, automation has been central to its overall supply chain strategy for years, as the company has sought improved efficiencies via new technology at its distribution and fulfillment centers.

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See also:

• Walmart completes remodel at South Jersey Supercenter



• Walmart seeks small business pitches for shelf-ready products

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During its 2023 investors meeting, Walmart said the company expects to use high-tech distribution centers to handle 55% of fulfillment center volume by the end of Fiscal Year 2026.

Walmart Chief Financial Officer John David Rainey reported during a February 2024 earnings call that the chain was on track to meet those targets and has automated distribution centers supporting 1,500 stores.

In his July 10 update about the company’s efforts , Guggina said, "We remain committed to meeting customer demand, embracing technology and bringing our people alongside the technology as we transform our supply chain.”

“With our investments in our associates and facilities, I’m confident we’re well-positioned to continue providing customers the items they want, whenever and wherever they want them, for years to come,” he said.

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