Walmart to expand supply chain infrastructure in Texas

Walmart is adding a new facility to its supply chain campus in Baytown, Texas.

The discount giant plans to build a new 1,000,000-plus-sq.-ft. distribution center to support its growing supply chain network. The new facility will be the retailer’s fourth in Baytown and is set to open in fall 2022, bringing the total square footage of the campus to over 5,000,000-sq.-ft.

The expansion is expected to create an additional 300 full-time jobs, and the Baytown campus is currently hiring full-time positions, including specialized roles and leadership positions.

This facility is part of a broader initiative to add more capacity into Walmart’s supply chain as the retailer prepares for growth. In the fourth quarter of fiscal 2022, Walmart U.S. e-commerce cited 70% growth during a two-year period. According to Walmart, six times the number of customers placed delivery orders in the fourth quarter of 2021 as did pre-pandemic.

In response, Walmart has been ramping up its supply chain infrastructure, from expanding its successful pilot of store-based, high-tech “local fulfillment centers” to applying artificial intelligence to the palletizing of products in its regional distribution centers.

Walmart has also been announcing plans to open multiple supply chain facilities across the country. In March 2022, the retailer said it is opening a new 1.8 million-plus-sq.-ft. fulfillment center in Shippensburg, Penn. Slated to open in spring 2022, the facility is focused on storing millions of items that are picked, packed and shipped directly to customers as soon as the next day.

Walmart also recently said it will fulfill online orders placed on Walmart.com from a hub in Salt Lake City, scheduled to open in summer 2022. The company also plans to build a high-tech distribution center for fresh and frozen groceries in Spartanburg County, S.C., as well as two high-tech supply chain hubs in the Dallas-Fort Worth area and a high-tech center in Lebanon, Tenn. where human associates, artificial intelligence (AI) software, and automated robots working together to ship orders to customers as efficiently as possible.

“Walmart is excited to expand our Baytown campus and another step in Walmart’s continued investment in the state,” said Mike Gray, senior VP supply chain operations, Walmart. “The Baytown campus and our other regional facilities continue to bring exciting new career opportunities within Walmart’s modern supply chain to hundreds of residents of the Houston area—all while helping us provide our local customers their everyday necessities with more variety and efficiency than ever before.”

“A highly skilled labor pool in the Houston area, and Texas more broadly, makes Baytown a prime destination for Walmart to continue expanding our supply chain network,” said Karisa Sprague, senior VP, US supply chain people, Walmart U.S. “We’re excited to continue to work with the community and government officials to bring new career opportunities to Southeast Texas.”

Walmart operates 19 distribution centers, 593 retail stores and employs over 185,000 associates in the state of Texas. The company operates approximately 10,500 stores and clubs under 46 banners in 24 countries and e-commerce websites.