What: Walmart’s CFO and head of investor relations outline how supply chain automation, in-store technology and remodels are impacting labour, sales, and consumer behaviour.

Why it is important: Walmart is investing in digital innovation which is allowing the retailer to increase productivity, reduce costs, and provide a better experience for customers.

The executives shared that customers who have a good experience on e-commerce are more likely to come back, as they become more accustomed to online shopping for groceries, they add in more general merchandise to their baskets.

Digital upgrades for its supply chain and stores is changing how employees do their jobs, for example,  investments in electronic shelf labels are saving workers from hours of work.

Walmart is also looking to make stores more efficient by using micro-fulfilment centres and automated storage and retrieval systems in its facilities. Additionally, they are outfitting existing distribution centers with automated storage and retrieval systems.

Their efforts to make an automated supply chain are making it more efficient and enabling them to better serve customers with reduced wait times and more accuracy in selecting items.

Once the supply chain transformation is complete, Walmart is expecting its unit economics around fulfilment to improve by 20%.

Some of the remodelled stores are seeing a 20% uplift in sales. The refreshed locations include wider aisles, improved signage, displays around apparel, and more brands. While the retailer notes that its is typical to see an increase in sales after a remodel, the uplift they have seen around this remodel has been much higher than usual.

Despite 65% of the stores being served by automation in the future to create a better experience and lower unit costs, the retailer doesn’t expect to make major changes to its associate headcount. They plan to redeploy individuals to do different jobs as well as upskill the workforce into positions that are serving the customer more or contributing to the overall technology.

With Walmart+, the retailer’s membership program, more digital engagement is possible with customers, allowing Walmart to better understand and tailor their offerings. Subscribers of the membership program tend to be younger, tech-savvy, more affluent and come through the grocery delivery or pickup channels. These members tend to shop more frequently and spend more than nonmembers.

While Walmart is focusing on digital innovation, convenience is an important part of where the retailer is headed as consumers highly value grocery pickup and delivery.

5 takeaways on digital innovation from top Walmart execs