Walmart Inc (NYSE:WMT) is likely to invest $200 million in self-driving forklifts to automate more of its warehouse operations.
The world’s largest retailer plans to buy potentially hundreds of autonomous forklifts from Fox Robotics, with whom it has already invested $25 million, reported Reuters citing sources.
This move is part of Walmart’s broader strategy to increase automation and compete with Amazon.com Inc (NASDAQ:AMZN).
Walmart’s plan includes exclusive deals with robotics vendors like Fox Robotics and Symbotic Inc (NASDAQ:SYM). These agreements will also restrict Walmart’s competitors from using the technology.
Walmart spokesperson Camille Dunn confirmed that the company is piloting the technology with 19 FoxBots in four facilities.
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In recent years, Walmart has focused on robotics to manage costs and keep product prices low. Analysts from Jefferies estimate that Walmart could add $20 billion to its profit before interest and taxes by fiscal 2029 due to automation and AI efforts.
Walmart’s deal with Symbotic, announced in 2022, involves implementing automation in 42 distribution centers, where Walmart owns more than 13% of Symbotic stock.
FoxBots, tested for over a year, can unload pallets and integrate them into Symbotic’s automated system. Fox Robotics claims a single operator can manage up to six autonomous forklifts, reducing labor costs by 40%.
Walmart stock has gained more than 29% in the last 12 months. Investors can gain access to the stock via the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) and Vanguard Consumer Staples ETF (NYSE:VDC).
Price Action: WMT shares are trading lower by 0.91% at $69.38 at last check Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
