Walmart's Automated Revolution: What 150K Drone Deliveries and High-Tech FCs Reveal About the Future of Retail

In the race to redefine grocery fulfillment, Walmart is executing one of the most strategic transformations in retail supply chain operations. From AI-powered distribution centers to a scaled drone delivery network, the world’s largest retailer is placing big bets on automation to not only enhance convenience for its customers but drive fulfillment cost efficiencies and sharpen its competitive edge.

This edge already sets Walmart apart as Grocery Doppio finds eCommerce profitability remains at top challenge facing grocery retailers’ digital business (93%) while fulfillment efficiency ranks second (87%).

Drone Delivery: From Pilot to Scaled Operation

Walmart says it’s committed to “reshaping the future of fast and flexible retail,” and to this point it has been steadily leading the way in last-mile automation. Since launching drone delivery in 2021, the company has completed more than 150,000 airborne drop-offs. In the beginning of June, it announced scaling drone delivery to 100 stores across five key metro markets: Atlanta, Charlotte, Houston, Orlando, and Tampa. This huge expansion builds on its existing last-mile drone fulfillment operations in Northwest Arkansas and Dallas-Fort Worth. Customers within a six-mile radius of these markets can now receive items in 30 minutes or less, positioning Walmart as a first mover in high-volume drone operations.
The significance of Walmart’s drone expansion for grocery retailers goes beyond speed, flexibility, and labor costs. It showcases Walmart’s commitment to convenience at scale. Drones are helping close the retailer’s same-day delivery gap, allowing Walmart to now reach approximately 93% of U.S. households with same-day delivery and expects to hit 95% by the end of 2025, according to Walmart Inc. CEO Doug McMillon and John Furner CEO, Walmart U.S. Walmart’s same-day delivery coverage of U.S. households has grown by 22% over the last 2 years (in China, the majority of its eCommerce orders are delivered in less than 1 hour).

Same-day availability has been shown to lift online conversion rates, particularly in grocery, where immediacy often dictates purchase decisions. As McKinsey puts it, same-day delivery is a “scale game,” and Walmart is playing to win.

Walmart isn’t just offering ultra-fast fulfillment via drones. It is crafting new shopping habits that will raise shopper expectations. “People all around the Dallas-Fort Worth metroplex have made drone delivery part of their normal shopping habits over the past year,” noted Adam Woodworth, CEO of Walmart’s established drone provider Wing. “Talking about speed, drone delivery continues to be popular with customers who’ve tried them,” said Furner.

As Walmart continues to scale these ultra-fast fulfillment habits, grocery retailers need to take note. Grocery Doppio found advanced fulfillment technology is grocers’ top new investment in its “2025 Digital Grocery Outlook.” “Grocers are prioritizing digital investments in foundational technologies that enhance efficiency, scalability, and shopper experiences. Back-end technology upgrades are essential for modernizing operations, streamlining inventory management, and ensuring reliability across channels. Fulfillment platforms are critical as online demand grows, enabling faster, more cost-effective delivery and pickup services.”

“As we’ve made the necessary investments to offer channel choice to our customers, we are seeing attractive incremental margins that come with more digital business,” said McMillon. “Our eCommerce business is approaching 20% of sales today, and over the next five years we expect it to contribute 50% of our topline growth.”‍‍

Automation In the FC 

Internally, Walmart’s supply chain is undergoing a high-tech overhaul. The retail giant has said it expects about 65% of stores to be serviced by automation by the end of fiscal 2026, with roughly 55% of fulfillment center (FC) volume moving through automated facilities. This transformation is being led by heavy automation ranging from AI-guided personalization to next-generation, high-speed fulfillment centers that slashed unit-delivery costs, densified last-mile routes, and propelled profit 3 % ahead of last year. 

Walmart currently operates four “next generation” FCs with a fifth planned for Stockton, CA, in 2026. The upcoming California-based FC will feature an automated, high-density storage and retrieval system that streamlines a manual, 12-step process down to just five steps. 

These FCs use a powerful combination of people, robotics, and machine learning and double the storage capacity and daily order throughput compared with legacy sites. Combined with the rest of Walmart’s fulfillment network, “next generation” FCs enable the retailer to reach 95% of the U.S. population with next- or two-day shipping. As the retailer modernizes its supply chain network, it’s also improving inventory visibility and fulfillment flexibility — key levers for omnichannel profitability.

Lessons for the C-Suite

Grocery Doppio finds 71% of grocers will make advanced fulfillment systems their top new technology investment area for 2025. “Advanced fulfillment systems are critical to meeting growing online demand, reducing costs, and ensuring fast, accurate deliveries.”

Walmart’s approach offers a blueprint: start with automation that scales and align it with customer-centric outcomes (while driving new eCommerce shopping habits). Walmart’s commitment to convenience and its tech roadmap underpins its margin success story. Dave Guggina, Chief eCommerce Officer, Walmart U.S. puts it best: “As I said before, I want you to think of Fast Delivery as a flywheel – starting with the customer experience.”

As labor markets remain unpredictable and consumers grow more accustomed to ultra-speedy delivery, retailers who can deliver faster, cheaper, and more accurately will own the next era of grocery.