Walmart to spend $330 million on store renovations in 2022

Walmart says it will spend $330 million to renovate 80 stores nationwide this year. (Getty Images)

Walmart (WMT) said it will spend $330 million to renovate 80 stores nationwide this year, as the retail giant continues to pump billions of dollars into modernizing its store infrastructure.

Walmart Canada announced Tuesday that it will spend $1 billion on major infrastructure projects in 2022, including renovating stores and creating a new $100 million fulfillment center outside of Montreal. The investments are part of Walmart’s previously announced plan that will see the company spend $3.5 billion to expand e-commerce capacity, build new distribution centers and upgrade stores to become “smarter stores.”

Walmart says the projects will make the online and in-store shopping experience simpler, faster and more convenient for customers as the retailer invests in continued growth to help more Canadians save money and live better.

The store’s renovations will allow the retailer to expand its product lineup, while incorporating more in-store space for online ordering, a major focus area for Walmart since the COVID-19 pandemic has driven many of its customers online. The company will also replace old systems with new technology, as part of its drive to create “smarter stores”. There will also be aesthetic upgrades, including new paint, new signage, and additional LED lighting in the main sections.

Walmart will also spend $100 million to build a new fulfillment center in Vaudreuil-Dorion, Que. , the first high-tech facility of the company in the province. With enough space to store 500,000 items, the fulfillment center will serve as a major delivery center for orders in Quebec and Atlantic Canada. Walmart says the facility will employ approximately 225 people.

“Quebec residents will see renewed stores, faster service, and more options available in stores and online,” Walmart Canada’s regional vice president for Quebec, Cyril Balero, said in a statement.

The projects come as many retailers grapple with rising inflation, lower demand, and growing fears about a recession.

But that didn’t stop Walmart Canada from continuing with its $3.5 billion investment plan. Suresh Kumar, Walmart’s chief technology officer and director of development, said in an interview with Yahoo Finance Canada this summer that deploying the technology in-store, online, and across the supply chain will be critical for the company, particularly in today’s economic environment.

“Our mission is to help people save money so they can live a better life, and technology isn’t just an important part of that, it actually matters,” Kumar said at the Collision Tech conference in 2022.

“It’s a critical enabler for us to be able to deliver on that promise and be able to deliver on it. Especially in this inflationary environment, it becomes really important to make sure that we can increase efficiency in our system.”

Elijah Sikerska is a senior correspondent for Yahoo Finance Canada. Follow her on Twitter Tweet embed.

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