What: Stores are key in Walmart’s e-commerce penetration strategy.

Why it is important:  Automation is key to make the most of real estate assets and make sure they contribute to e-commerce profitability.

At Walmart's annual investors meeting, executives highlighted the importance of their brick-and-mortar network, which is within 10 miles of 90% of the U.S. population.

While the retail giant is focusing on e-commerce growth, its physical stores remain crucial to its success. Walmart U.S. CEO John Furner emphasized the stores' role in the company's omnichannel operation, stating that their proximity to customers reduces delivery time and costs.

Over the next five years, almost 90% of Walmart's capital expenditures will go toward high-return areas like e-commerce, supply chain, and store investments. By the end of fiscal year 2026, the company expects 65% of its stores to have automation capabilities, and 55% of fulfillment center volume to move through automated facilities.

Walmart also plans to continue investing in technologies that improve efficiency and reduce labor demands.

Walmart bets on wide-scale automation for e-commerce