These physical stores function as warehouses, processing online orders but not open to the public. According to Bloomberg, these dark stores will stock Walmart's best-selling products. Another location in Bentonville, Arkansas, where the company's headquarters is located, is also planned.

A Walmart store. Photo: Walmart

A Walmart store. Photo: Walmart

"We regularly test new tools, features, and solutions to better serve our customers, no matter how they choose to shop," a Walmart spokesperson told Retail Dive. "Whether online or in-store, our goal is to provide a fast, seamless, and engaging shopping experience."

Operating dark stores helps accelerate order processing and optimize operational efficiency, which is key as Walmart accelerates its e-commerce efforts. In recent years, the company has leveraged its existing store network and technologies like drones to enhance its delivery capabilities.

In the first quarter of this year, Walmart US achieved e-commerce profitability for the first time, with sales increasing by 21%. Chief Financial Officer John David Rainey called this a "significant milestone" for the company.

Net delivery costs in e-commerce have also decreased thanks to increased density of last-mile delivery orders and customers paying more for expedited delivery. Walmart expects to reach 95% of the US population with delivery options within 3 hours in the future. In the first quarter alone, the number of orders delivered in under 3 hours increased by 91% year-over-year.

The Dan (according to Retail Dive)