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By Marcus Bennett

Retail & Distribution

Walmart Plans $400M, 744,433-Square-Foot Texas DC

Walmart plans a $400M, 744,433-sq-ft distribution center in Cibolo, Texas, per an Oct. 28 state filing. Groundbreaking is set for February; completion Aug. 1, 2029.

Walmart plans $400M Texas distribution center
PhotoWalmart plans $400M Texas distribution centerMykola Kolya Korzh / unsplash

At a glance

  • Walmart plans a $400 million, 744,433-square-foot distribution center in Cibolo, Texas, per an Oct. 28 state filing.
  • Groundbreaking is set for February; expected completion is Aug. 1, 2029.
  • The filing doesn't state whether the facility will include automation technology.
  • Walmart opened a 900,000-square-foot 'next-generation' fulfillment center in Stockton, California, earlier this month.
  • A 1.5-million-square-foot fulfillment center in Georgia is slated to begin construction late this year.

Walmart plans to spend an estimated $400 million on a 744,433-square-foot distribution center in Cibolo, Texas, according to a Texas Department of Licensing and Regulation document dated Oct. 28.

The filing sets a February groundbreaking. Completion is expected Aug. 1, 2029 — roughly four and a half years from the start of construction. The $400 million figure includes office space, per the document.

To put the size in perspective: at 744,433 square feet, the building would cover about 17 acres under one roof, or the equivalent of nearly 13 football fields.

What the filing doesn't say

The document doesn't say whether the new facility will include automation technology. That gap matters, because Walmart has spent the past two years retooling its distribution network around exactly that kind of equipment.

Walmart did not respond to a request for comment by the time of publication.

Earlier this year, the retailer said it expects supply chain spending to "peak" over the next two years. The company has been automating its distribution network, with the technology meant to help cut shipping costs through better operational efficiencies.

So a $400 million build with no stated automation plan is either a notable omission in the filing or a shift in approach. The paperwork alone can't tell us which.

Takeaway: the money is committed on paper, but the filing leaves the retailer's automation strategy for this site an open question.

How this fits Walmart's Texas and national buildout

The Cibolo project isn't Walmart's only supply chain move in Texas. Earlier this year, the retailer outlined plans to begin another phase of a Texas distribution center remodel in August. That 96,715-square-foot project was set to include:

  • Some demolition
  • New electrical and material-handling equipment
  • Updates to fire suppression and compressed air systems

Outside Texas, Walmart has kept expanding its fulfillment network at a faster clip:

  • Earlier this month, it opened a 900,000-square-foot "next-generation" fulfillment center in Stockton, California, to scale capacity for West Coast customers.
  • It also recently announced plans for a 1.5-million-square-foot fulfillment center in Georgia, with construction slated to begin late this year.

The Georgia facility alone would be double the size of the Cibolo distribution center.

Takeaway: Cibolo is one node in a multi-state construction push, not a standalone bet.

Why it matters for the supply chain

Walmart has tied its automation push directly to cost: better operational efficiencies, lower shipping costs. If the Texas facility follows that playbook, expect the company to confirm automation details closer to the February groundbreaking — the Oct. 28 filing simply doesn't.

With supply chain spending expected to peak within two years, per Walmart's own earlier statement, projects like Cibolo and the Georgia fulfillment center represent the retailer betting big on capacity now, before that spending curve tops out.

Source: Retail Dive

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Marcus Bennett

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News editor covering companies, deals and strategy in trade marketing, shopper marketing, trade promotions, category management at Target Marketing.

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