Walmart to test dark stores in Bentonville, Dallas metro

So-called dark stores have been around for decades, and Walmart tested a similar format in its Bentonville online grocery pickup center between 2014 and 2023, before it closed.

Walmart is once again moving forward with testing online fulfillment centers — aka, dark stores that are not open to the public — to help with delivery from online orders. The dark stores are filled with the most commonly purchased online items. Dark stores will likely carry mostly grocery items for home delivery, according to retail insiders.

The retail giant confirmed it is testing the concept in Dallas and will soon do so again in Bentonville.

This comes after Walmart invested in micro-fulfillment centers with automated fulfillment technology developed by Symbotic. That company purchased Walmart’s internal robotics business in January for $200 million with plans for Walmart to pay Symbotic to develop, build and deploy an advanced technology solution to automate accelerated pickup and delivery centers in 400 stores.

“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 in an email to Talk Business & Politics. “Regardless of the channel, our goal remains the same: to deliver a fast, seamless, and engaging customer experience.”

Walmart has used its massive store footprint to speed up delivery options for most items. The retail giant’s e-commerce business was profitable in the first quarter, hitting a milestone for the business. The retailer also invested in the Dallas-Fort Worth market to protect its market share with expanded drone delivery and now a dark store. The move comes as Texas grocery giant H-E-B also continues to invest in its online order business.

Scott Benedict, retail consultant with Benedict Enterprises, said it’s early enough to test several modes of online fulfillment, and it does not have to be a one-size-fits-all game. He said putting a dark store in Bentonville is one way Walmart can test benefits in a market it already dominates and where it already has a micro-fulfillment center.

Store aisle congestion is an issue for Walmart shoppers who more frequently encounter Walmart employees and their big carts gathering items for online orders.

Walmart Chief Financial Officer John David Rainey said e-commerce margins are benefiting from more deliveries, a rising number of paid expedited delivery orders, and automation of the supply chain.

“As we scale our store-fulfilled delivery business, we’ve seen significant improvement in batch density with orders per delivery up 20%,” Rainey said. “In addition, the popularity of expedited delivery has resulted in more than 30% of orders coming from customers and members who elected to pay a convenience fee to receive their delivery in less than one hour or less than three hours.”

Walmart CEO Doug McMillon has said the company plans to deliver to 95% of U.S. shoppers within three hours by the end of the year.