Walmart is banking on the new distribution centers to keep it atop the grocery world.
Transcript:
Conway Gittens: Here’s what we’re watching on thestreet today.
The Nasdaq and S&P 500 again ended the trading day with record highs as investors grow more confident interest rates will be on the chopping block later this year. Before wrapping up two days of testimony, Federal Reserve chairman Jerome Powell told lawmakers lower rates may be needed to protect the labor market from softening too much.
The focus now turns to Thursday’s release of the June consumer price index, as well as quarterly scorecards from Delta and Pepsico.
Turning now to other business headlines: Walmart WMT is going more hi-tech in an attempt to boost its grocery business. The nation’s largest grocer is adding roughly 5-1/2 million square feet to its automated distribution network in order to keep fresh produce, frozen foods, and chilled items flowing to customers.
Walmart says it will open five new automated distribution centers across the country, and four existing distribution centers will be expanded to make room for machines and robots. Walmart is modernizing its supply chain “to enable greater speed and capacity that allows us to serve customers even more reliably.”
Walmart has seen a bump in sales as budget-conscious consumers look for cheaper grocery options, and as home delivery and in-store pick-up become more popular. Walmart’s e-commerce business jumped 22 percent in the first quarter.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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