Walmart is revamping its delivery system and supply chain to reach 95% of the U.S. population in under three hours by the end of 2025, according to a letter from CEO Doug McMillon to shareholders.
The move is part of a sweeping digital transformation focused on speed, automation, and efficiency. McMillon said the retailer is “more tech-powered than we’ve ever been,” emphasizing that the new delivery infrastructure will rely on automated systems and real-time data tools to optimize performance.
New geospatial system replaces ZIP codes
To meet its ambitious delivery goals, Walmart has abandoned traditional ZIP code-based delivery mapping. Instead, it now uses a hexagonal geospatial grid system. The company describes it as similar to “pixels in a digital image,” where each hexagon holds real-time data on delivery slot availability, drive times, store capacity, and customer demand.
This granular targeting method is expected to dramatically increase delivery speed and precision, enabling same-day service for nearly the entire country.
Tech-first supply chain aims to boost e-commerce
The retailer’s upgraded supply chain incorporates automated storage and retrieval systems at its fulfillment centers. These changes support both in-store shopping and e-commerce operations, which reached $121 billion in sales, according to Walmart’s latest annual report.
McMillon wrote that the company is deploying new technologies across its logistics network to build a “smarter, more flexible” system that can adapt to economic shifts.
Financial gains—and closures
Walmart posted strong financial results for the year, including a 5.1% revenue increase and 8.6% growth in operating income. Despite the gains, Walmart will close several underperforming stores across the U.S., including locations in Georgia, Maryland, Ohio, Wisconsin, Colorado, and California.
The closures come as Walmart faces macroeconomic uncertainty tied to fluctuating tariffs and inflation. Still, McMillon expressed optimism about the company’s resilience: “When the winds blow, flexibility is important—and we’ve got that.”
Key store closures announced
Here are the Walmart locations confirmed for closure by late 2025:
- Georgia: Dunwoody, Marietta
- Maryland: Towson
- Ohio: Columbus
- Wisconsin: Milwaukee
- Colorado: Aurora
- California: San Diego, El Cajon, West Covina, Fremont, Granite Bay
What this means for shoppers
For most Americans, Walmart’s investment means faster, more customizable delivery options. The expansion of its geospatial platform will likely reduce delivery delays and offer more transparency about order tracking.
However, the store closures may limit access in affected areas, especially for customers who rely on in-person shopping. Walmart has not confirmed whether delivery service will expand in those regions.
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