Walmart Inc. is betting on greater supply-chain automation and hinting that a recent investment binge might lift profit beyond the retailer’s stated long-term goals.
Within three years, the unit cost of moving goods will fall 20% as warehouse robots play a larger role in speeding goods to customers, Walmart said in a statement Tuesday. While the company reiterated its outlook for this year and the longer term, the opportunity to boost operating income “could be better than what we’ve outlined,” said Chief Financial Officer John David Rainey.
The world’s largest retailer is trying to show off its long-term earnings potential to Wall Street after ramping up capital expenditures in recent years to keep pace with Amazon.com Inc. and other rivals. Walmart says its revamped supply chain will enable it to ease cost pressures tied to the rise of e-commerce and help end a decade of stagnation in U.S. operating income.
