Walmart’s (WMT) Latest Move Boosts Supply Chain Transformation

Walmart Inc. WMT continues to transform its grocery chain, marking the next step in its supply chain modernization journey. Following suit, the largest grocery retailer in the United States opened a new 730,000-square-foot perishable distribution center (PDC) in Lancaster. Located 15 miles south of Dallas, the state-of-the-art facility manages the receiving and processing of fresh produce, eggs, dairy, flowers and frozen foods for delivery to nearby Walmart stores.

State-of-the-art technology at Walmart’s new Lancaster facility enables the efficient processing of merchandise, including fragile items, on pallets ready for shipment to the store by department, optimizing truck space and reducing costs for customers.

Perishable distribution centers play a key role in Walmart’s evolving supply chain, ensuring a steady supply of fresh and frozen products to more than 4,600 stores. The Lancaster facility is Walmart’s second in five new advanced perishable distribution centers.

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What else should you know?

Walmart continues to be driven by its strong omnichannel business. From investing in pioneering data analytics to expanding its digital presence and optimizing store operations, Walmart is leaving no stone unturned. Walmart’s impressive proximity to customers has allowed it to leverage its stores to fulfill e-commerce orders. WMT has launched several initiatives to streamline e-commerce operations, including buyouts, alliances, and improved delivery and payment systems. In the first quarter of fiscal 2025, global e-commerce sales grew 21% for in-store pickup and delivery and marketplace and contributed 18% to Walmart’s total net sales.

Walmart has significantly strengthened its delivery capabilities, including its Express On-Demand Early Morning Delivery service, Spark Driver platform, partnership with Salesforce, expansion of its InHome delivery service, investment in DroneUp, Walmart+ membership program, and a pilot with Cruise to test grocery delivery using fully electric, autonomous vehicles.

As Walmart’s grocery store network continues to grow and expand, and as e-commerce and delivery capabilities advance, the company remains at the forefront of innovation, poised to enhance customer convenience and operational efficiency for the future.

Shares of the Zacks Rank #2 (Buy) company have gained 18.1% in the past three months, while the industry has seen an increase of 15.5%.

Take a look at these solid choices

We have highlighted three other top-ranking actions, namely: Abercrombie & Fitch Co. ANF Gap Inc. GPS and DICK’S Sporting Goods DKSs.

Abercrombie & Fitch, a specialty retailer of premium, high-quality casual apparel, currently has a Zacks Rank #1 (Strong Buy). ANF has a trailing four-quarter average earnings surprise of 210.3%. You can see complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimates for Abercrombie & Fitch’s sales and earnings for the current fiscal year are projecting growth of 10.4% and 47.3%, respectively, from the prior-year period.

Gap, a fashion apparel and accessories retailer, currently boasts a Zacks Rank #1. GPS has posted an average annual earnings surprise of 202.7% over the trailing four quarters.

The Zacks Consensus Estimate for Gap’s sales and earnings per share for the current fiscal year is projecting an increase of 0.2% and 21.7%, respectively, from the prior-year levels.

DICK’S Sporting operates as an omni-channel sporting goods retailer. It currently has a Zacks Rank #2 (Buy). DKS has an average earnings surprise of 4.7% for the trailing four quarters.

The Zacks Consensus Estimates for DICK’S Sporting’s sales and earnings for the current fiscal year are expected to improve by 1.8% and 6.6%, respectively, from the prior-year period.

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