Major change to Walmart stores expected - leaving customers unimpressed

1500     0
Walmart has announced a major changes to its store (Image: SOPA Images/LightRocket via Getty Images)
Walmart has announced a major changes to its store (Image: SOPA Images/LightRocket via Getty Images)

Walmart has announced plans to make the majority of its stores automated - leaving customers unimpressed.

The supermarket giant confirmed 65% of its stores will be fully automated within the next three years amid problems finding workers.

The change was announced at the company's annual investor meeting in Tampa, US, on Tuesday as it prepares to layoff 2,000 workers who pick online orders for customers.

It is unclear if the move will lead to more job cuts as the country's largest private employer, with around 1.7 million US workers, and 60,000 employees across the world, moves into automated technology.

The company said the move would reduce the need for lower-paid roles.

Morrisons is slashing over 130 prices on its saver-products from today eiqruidtidxprwMorrisons is slashing over 130 prices on its saver-products from today
Major change to Walmart stores expected - leaving customers unimpressedThe company said the move would reduce the need for lower-paid roles (Getty Images)

Walmart said in a statement: "As the changes are implemented across the business, one of the outcomes is roles that require less physical labor but have a higher rate of pay.

"Over time, the company anticipates increased throughput per person, due to the automation while maintaining or even increasing its number of associates as new roles are created."

The company claimed 55% of packages processed through is fulfilment centres will transition to automated facilities by January 2026.

Stephens Inc analyst Ben Bienvenu said: "'This increased efficiency will not only support better inventory management, but it will also support Walmart's rapidly growing e-commerce business."

The supermarket has spent billions of dollars on new technology in order to revolutionise its online order facilities as it cuts back on the number of employees needed to process orders from 12 down to 5.

Mr McMillon said the technology will create roles that “require less physical labour but have a higher rate of pay."

He added: "We are a people-led, tech-powered omnichannel retailer. As it relates to being people-led, it’s about purpose, values, culture, opportunity and belonging. We serve our associates by creating opportunities.”

Major change to Walmart stores expected - leaving customers unimpressed65% of its stores will have self-checkouts within the next three years (Getty Images)

Walmart CEO Doug McMillon said in February he was "most excited about the automation opportunity we have."

However, Walmart customers have been less than impressed with the announcement amid fears technology and AI could replace humans.

One user wrote: "These jobs are going and never coming back thanks to AI. Redundant low skill jobs like these will also not be the only ones."

Prime energy drink spotted for sale in dessert shop for a massive £10 a bottlePrime energy drink spotted for sale in dessert shop for a massive £10 a bottle

Another added: "If robots do everything, people will not have jobs to earn money to buy stuff."

According to a report from the Bureau of Labour Statistics, there are nearly 9.9 million job vacancies and 5.9 million unemployed people across the US, with the supermarket struggling to fill the jobs.

Walmart had hiked their minimum wages earlier this year to $17.50 (£14) an hour in a bid to attract more employees.

Liam Buckler

Walmart, Supermarkets

Read more similar news:

04.01.2023, 11:50 • Money
Aldi unveils 0% pink gin in time for Dry January - and 40% cheaper than Gordon’s
04.01.2023, 12:28 • Money
Tesco vows to price-lock products until Easter to help with cost of living
05.01.2023, 04:00 • Money
Morrisons launches petrol deal that could save you big on fuel bills this month
05.01.2023, 13:09 • UK News
Asda shoppers baffled by mysterious white rectangle on front of milk cartons
06.01.2023, 12:53 • Money
Expert warns of 'sneaky' trick supermarkets play by putting Easter eggs out now
07.01.2023, 08:31 • Showbiz
Coronation Street's Alexandra Mardell takes Aldi job after quitting ITV soap
07.01.2023, 20:33 • UK News
Steaks moved from supermarket shelves as shoplifters target high-end meat
09.01.2023, 10:13 • UK News
Lads travel 220 miles to get their hands on Prime drink at 10 times retail price
09.01.2023, 10:33 • Money
ASDA shoppers 'won't order takeaway pizza again' after testing 40p in-store deal
09.01.2023, 11:36 • Money
Tesco workers 'received tubs of Quality Street instead of cash Christmas bonus'