Walmart opens latest high-tech distribution center

A 730,000-square-foot perishable Walmart distribution center opened in Lancaster, Texas, on Tuesday.

The new facility is located 15 miles south of Dallas and receives and processes fresh produce, eggs, dairy, flowers, and frozen goods for delivery to nearby Walmart stores. Walmart has 590 locations in Texas.

This is Walmart’s second facility to open in Lancaster. In 2023, the retailer powered up a next-generation fulfillment center in the city. The center also is Walmart’s second of five new high-tech perishable distribution centers now open.

Technology allows for more than double the processing volume compared to a traditional distribution center. Store-ready pallets are built by the department, making it easier to unload products at the store and maximizing space on delivery trucks.

“This is a game-changer for our city, blending our skilled workforce with cutting-edge technology to deliver fresh, high-quality food,” said Lancaster Mayor Clyde Hairston. “Beyond innovation, this center will create sustainable jobs for our community and enhance access to nutritious food.”

Last week, Walmart announced it was adding four highly automated perishable distribution centers around the country, and automated technology would be added to five more centers.

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Along with the Lancaster location, Walmart also operates an automated perishable distribution center in Shafter, Calif. Additional DCs are planned for Wellford, S.C., Belvidere, Ill., and Pilesgrove, N.J.

“We’re adding state-of-the-art tech to our facilities … to enable greater speed and capacity that allows us to serve customers even more reliably,” said Dave Guggina, executive VP of supply chain operations for Walmart U.S. in a blog post.

Walmart is also expanding four of its traditional perishables distribution centers by adding more than 500,000 square feet of automation per site to increase capacity for fresh products. These facilities are located in Mankato, Minn., Mebane, N.C., Garrett, Ind., and Shelbyville, Tenn.

A distribution center in Winter Haven, Fla., will also be retrofitted with automated tech.