Costs and tech troubles soar in Walmart’s robot push

Walmart’s ambitious, multibillion-dollar automation project covering 200 US supply-chain facilities has faced years of technical setbacks and financial difficulties.

The retailer’s attempts to automate tasks performed by its 140,000 warehouse workers have proved challenging and, at times, expensive.

Even basic activities, such as flattening cardboard boxes and handling oversized items, have proven challenging for warehouse robots. Boxes must be cut down and taped to fit automated systems, driving up costs.

Additionally, monthly utility costs at automated grocery warehouses have climbed from $250,000 under manual operations to more than $800,000, while expenses for specialized engineers have also increased.

Robot maintenance is also problematic. Walmart’s primary automation partner for nonperishables, Symbotic—in which it holds a 12.6% stake—struggled with equipment breakdowns caused by dust buildup.

While under 10% of Symbotic’s robots were under repair last year, that figure has since decreased to around 5%.

A costly undertaking
Since 2016, Walmart has poured nearly $1 billion into in-store automation. In 2023, it acquired robotics company Alert Innovation for $400 million before selling it to Symbotic at a $200 million loss.

Despite these setbacks, company leaders continue to view automation as a long-term strategic priority.