Walmart's Quiet Tech Revolution: From Retail Giant to Logistics and Media Empire

Next-Gen Logistics: Drones and Automation

Today, over half of Walmart's online orders are now fulfilled by automated systems, cutting fulfillment costs by about 20%. They’re installing high-tech mini warehouses in hundreds of stores to speed up local online order fulfillmentIn last-mile delivery. Walmart began testing drones in 2021 and has already completed 30,000 drone deliveries. Now the company is expanding drone service to 100 stores across multiple states, with items arriving in as little as 30 minutes! By partnering with drone companies and using store parking lots as launch pads, Walmart is making aerial delivery a practical option and automating its supply chain. These moves let Walmart deliver products faster and more efficiently, creating a logistics network that rivals Amazon’s. For brands, a tech-optimized Walmart means a stronger fulfillment partner, whether you use Walmart’s marketplace or its fulfillment services.

‍

Walmart Connect: A Retail Media Network Rising

Another major shift is Walmart’s emergence as an advertising platform. Walmart Connect, the company’s retail media network, saw ad revenue surge 27% to $4.4 billion in 2024. That makes Walmart Connect the second-largest retail media network in the U.S., behind Amazon. Walmart is leveraging its shopper data and store traffic to help brands target customers with ads on Walmart’s website, app, and in stores.

‍

Advertisers are taking notice. Many now consider Walmart’s retail media network “one to watch” as it rapidly expands. For brands, Walmart isn’t just a point of sale, it’s also a marketing channel. Investing in Walmart Connect ads can boost a product’s visibility and sales on Walmart’s platform, much like Amazon’s sponsored listings do. In an era where nearly every big retailer is rolling out its own retail media program, Walmart has quickly become a leader in this space.

‍

Stores as Hubs: Walmart’s Real Estate Advantage

Walmart’s physical footprint is a key asset in its tech pivot. With 90% of Americans living within 10 miles of a location, each store now doubles as a local distribution hub. They fulfill a large volume of online orders directly from store inventory; this ship-from-store model grew over 200% in recent years, reaching about $1 billion in monthly sales. In effect, a Walmart store is not just a retail location, it’s also a mini fulfillment center for nearby online customers.

This local approach sets Walmart apart from Amazon’s centralized warehouses. By using stores for e-commerce fulfillment, Walmart can offer services like same-day delivery at scale. For brands, Walmart’s real estate strategy means products can get into customers’ hands faster and with lower last-mile costs. The company’s sprawling store network has become a tech-enabled logistics web that competitors will find hard to match.