Popular retailer Walmart is testing the idea of “dark stores” where brick-and-mortar locations will be closed to the public in an effort to efficiently fulfill online orders, Grocery Dive reports.
The dark store concept helps retailers speed up the process of online purchase fulfillment, an important detail for retailers on the operations side. In recent years, the company used advanced technology such as drones, to advance the delivery process. “We regularly test new tools, features, and capabilities to better connect with and serve our customers — wherever and however they choose to shop,” a Walmart spokesperson said.
“Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience.”
The concept is currently being tested in Dallas, Texas but will soon be tested in the retailer’s headquarters of Bentonville, Arkansas, according to USA Today. While the stores won’t hold any Walmart signage, it will hold some of the company’s most popular products ordered by consumers as another way to speed up online order fulfillment.
The company hopes dark stores will help them reach 95% of the U.S. population with the delivery option in three hours or less. As Walmart’s chief financial officer John David Rainey announced U.S.-based stores reached e-commerce profitability for the first time in quarter one of 2025, with sales increasing by 21%, the number of deliveries in under three hours also went up by 91% in the same quarter in comparison to the same in 2024.
While the popular retailer warned of price influx due to President Donald Trump’s tariff wars, things still worked out for the company with revenue growing by 2.5% in Q1 to $165.6 billion. Operating income also increased to $7.1 billion as CEO Doug McMillon boasted about the company being “positioned to manage the cost pressure from tariffs as well or better than anyone.”
Retail experts support Walmart’s concept of dark stores, saying it proves the brand isn’t out of touch with trending moves. “Where Walmart was lagging was the tech piece and they’ve been able to ramp that up now,” vice president of content at eMarketer, Suzy Davidkhanian, said. The retailer first proved to be catching up with the times after launching its Walmart+ subscription service with unlimited free delivery from stores in 2020. The effort placed the company in competition with Amazon Prime.
The service had an advantage over Prime subscribers if customers received government assistance such as including SNAP, WIC and Medicaid. Eligible customers received a discount, paying $6.47 monthly or $49 annually versus the normal price of $12.95 per month or $98 annually.
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