By Denny Jacob

Walmart Inc. on Tuesday said about 65% of its stores will be served by automation by the end of fiscal 2026, part of its broader growth strategy outlined at its 2023 Investment Community meeting.

The retailer also said by the end of fiscal 2026 it expects about 55% of volume at its fulfillment centers to be automated and unit cost averages could improve by 20%. The company said it expects increased throughput per person due to automation while maintaining or even increasing its number of employees as new roles are created.

Walmart said three building blocks will be key to transforming its financial profile: sales growth from its omni-channel business model, diversified earnings streams through improved category and business mix, and scaling high-return investments that drive operating leverage and improve incremental operating margins.

While Chief Financial Officer John David Rainey said Walmart believes its growth targets over the next few years are still appropriate, he noted that the company could outperform.

"We think the opportunity for operating income growth over the next 3-5 years could be better than what we've outlined," said Mr. Rainey.

The company outlined targets for 4% growth and over 4% operating income growth over the next three to five years. Walmart maintained its guidance for the first quarter and fiscal 2024.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

April 04, 2023 17:08 ET (21:08 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
Walmart (NYSE:WMT)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024 Click aqui para mais gráficos Walmart.
Walmart (NYSE:WMT)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024 Click aqui para mais gráficos Walmart.