Two new online fulfillment centers are to be built in Texas and Pennsylvania for Wal-Mart (NYSE:WMT).
According to a company press release, the centers will dedicate their operations to delivering online shipments faster and more cheaply, and will create more than 600 new positions (275 in Texas, and more than 350 in the Pennsylvania location) for full-time Wal-Mart staff. The company said the center in Pennsylvania -- with more than 1 million square feet -- will be Wal-Mart's largest center of its kind.
Representatives from Wal-Mart believe that these new developments will help propel the company into the next generation of e-commerce, because in president and CEO Joel Anderson's words, "we gain a significant advantage by being positioned in the most important location --close to our customers... [This] allows us to get more products to our customers faster and at a lower cost."
The new centers will be able to store hundreds of thousands of items in a broad array of categories, from electronics to apparel and more. The 800,000-square-foot Fort Worh, Texas, center has already begun shipping orders as of last week, while Wal-Mart's Bethlehem, Pa., location is expected to open in the first quarter of the next fiscal year.
Wal-Mart has increased its projection for online sales this year, to $10 billion from $9 billion. Globally, online sales increased 30% in the second quarter. However, Wal-Mart's online sales remain only a sliver of its total revenue of $466.1 billion, excluding membership fees. Wal-Mart has more than 130 distribution centers.
-- Material from The Associated Press was used in this report.
Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Wal-Mart Is Testing an AI-Powered Robot
The world's largest retailer is augmenting its human associates with an AI-infused robot to combat out-of-stock items.
Why Wal-Mart Is Closing 63 Sam's Club Stores
Despite criticism, closing the stores makes sense.
Why 2017 Was a Year to Remember for Wal-Mart Stores Inc.
Many had written off Wal-Mart as a pending casualty of the dawning online era. Several acquisitions and new online chief later, and the retailer has come roaring back to life.