Walmart Opens Fifth Next-Gen Fulfillment Center in Stockton, California

Walmart has opened its fifth next-generation fulfillment center, a 900,000-square-foot facility in Stockton, California, that expands storage capacity and order fulfillment across California and the West Coast, the retailer announced.

The facility's centerpiece is an automated, high-density storage and retrieval system that brings products directly to associates instead of requiring workers to travel the floor. Walmart said the system reduces a 12-step fulfillment process to five steps, freeing workers for higher-value tasks.

Karisa Sprague, senior vice president in fulfillment operations at Walmart U.S., said in a written statement: "We're bringing together associates with advanced technology and automation to create a safer, more efficient operation that can fulfill more orders and get products to customers faster."

She added: "This facility is an important investment in the Central Valley and a critical part of how we're building the next generation of Walmart's fulfillment network across the West Coast."

How much of Walmart's network is automated?

Walmart now processes more than half of its ecommerce fulfillment volume through automated facilities, according to figures the company shared with investors alongside its fiscal Q2 earnings results. Another 3,100 of Walmart's U.S. stores use automated freight to some capacity.

Combined with its broader fulfillment network, the next-generation centers enable Walmart to reach 95% of the U.S. population with next- or two-day shipping, the company said.

Why does delivery speed drive Walmart's ecommerce growth?

Walmart U.S. online sales grew 26% in Q1, with delivery speed cited by Rainey as "a key catalyst for growth around the world." Walmart can now reach about 60% of the U.S. population through delivery in 30 minutes or less, a capability it has expanded to 38 U.S. markets.

Store-fulfilled delivery has more than doubled over the past two years. More than 36% of those orders now arrive in under three hours.

"Speed matters, and we have a significant competitive advantage," Walmart CEO and President John Furner told investors in August.

What does the Stockton center mean for marketplace sellers?

The facility is not reserved for Walmart's first-party ecommerce business. Walmart Fulfillment Services (WFS), the company's end-to-end third-party fulfillment offering, will also use the space to fulfill orders for merchants selling on Walmart.com — a direct benefit for brands and distributors selling through Walmart Marketplace.

Demand for that capacity is growing fast. Units shipped same day or next day through WFS grew nearly 150% in fiscal Q1, according to John David Rainey, chief financial officer at Walmart.

Walmart ranks No. 2 in Digital Commerce 360's Top 1000 Database, which tracks North America's largest online retailers by annual ecommerce sales, and No. 37 in its AI Commerce Rankings.

With the Stockton opening, Walmart now operates five next-generation fulfillment centers, and marketplace sellers on the West Coast gain a closer, faster fulfillment option as WFS volume accelerates.