- Walmart is piloting dark stores — physical retail locations used solely for online order fulfillment — in Dallas, with another site planned for Bentonville, Arkansas.
- The move aligns with Walmart’s broader push to improve delivery speed and e-commerce efficiency, following its first profitable e-commerce quarter in Q1.
- By leveraging existing infrastructure and new technology, Walmart aims to reach 95% of the US population with delivery in three hours or less.
A New Kind Of Store
Walmart confirmed it is testing dark stores, a fulfillment model where physical locations are optimized for online orders but remain closed to the public, reports RetailDive. The pilot launched in Dallas, and a second site is being prepared in Bentonville, Arkansas — Walmart’s hometown.
Strategic Shift
The dark store model supports Walmart’s ongoing digital transformation. A company spokesperson emphasized that the goal is to “deliver a fast, seamless, and engaging customer experience” across all shopping channels.
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Driving Profitability
The pilot comes as Walmart celebrates a milestone — its first profitable quarter in US e-commerce. Sales rose 21% in Q1, helping the company grow revenue by 2.5% year over year to $165.6B, with operating income up 4.3%.
Walmart has managed to reduce net delivery costs by increasing the density of last-mile deliveries and encouraging customers to use paid fast-delivery options. In Q1, the number of deliveries completed in under three hours surged by 91% year-over-year.
Bigger Picture
Dark stores are the latest tool in Walmart’s logistics playbook, joining automation and drone delivery trials. The company is targeting 95% US coverage with ultra-fast delivery options.
Streamlining Efforts
The company has also taken cost-cutting steps, including a recent reduction of 1,500 roles across its US retail and global tech divisions. Leadership says these changes will help the company remain agile amid economic and regulatory shifts, including potential tariff-related price hikes.
What’s Next
As Walmart continues investing in delivery and automation, dark stores could become a cornerstone of its fulfillment network. With rising customer expectations for speed and convenience, the retailer is positioning itself to compete aggressively with Amazon and other digital-first platforms.
