Walmart expands partnership with Symbotic and announces 62.2% majority stake in Symbotic

Walmart expanded its partnership with warehouse automation expert Symbotic last month to implement Symbotic's robotics and automation platform into Walmart distribution centers. Walmart disclosed in a filing with the U.S. Securities and Exchange Commission that it had purchased a 62.2% majority stake (58.8 million shares) in Symbotic, and Symbotic's stock price rose 16% in pre-market trading on June 21.

Initially, Symbotic will provide its advanced automation technology to 25 regional distribution centers (RDCs), and under the expanded agreement, Symbotic technology will be deployed to all 42 of Walmart's RDCs. Symbotic also went public on the Nasdaq earlier this month under the ticker symbol SYM through a SPAC transaction coordinated with SoftBank Investment Advisers.

Joe Metzger, executive vice president of Walmart’s U.S. supply chain operations, said Symbotic has customized its AI-driven system to meet Walmart’s delivery needs, first testing it at a Walmart distribution center in Florida in 2017. At the time, Metzger praised the technology for “operating with a precision that can speed up the inbound process and improve the accuracy of goods stored for future orders.”

“But switching warehouses to new technology takes time, and Walmart and Symbotic estimate the complete transformation will take more than eight years,” David Guggina, senior vice president of innovation and automation at Walmart, said in a statement. “The need for accuracy and speed in the supply chain has never been more evident, and we believe now is the time to accelerate the pace of delivery by expanding Symbotic’s technology to our entire network of regional distribution centers.”

It is learned that Symbotic is able to build pallet-loaded assorted inventory that can help Walmart quickly deliver products to its more than 4,700 stores. In addition to Walmart, Symbotic's customers include Albertsons, Target and Cohen's own C&S. For the six months ended March 26, Symbotic's revenue increased to $173 million, six times the $29 million reported in the same period last year, with a net loss of $53 million during the period and a net loss of $122 million in 2021.

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