Walmart Inc. has announced that they are planning to open four new fulfillment centers in United States over the next two years. The company aims to expand their delivery network and make jobs easier for their workers. Moreover, the establishment of these new fulfillment centers will create 4,000 new jobs at Walmart.
Tight labor market and Walmart’s Strategy
U.S. job market is going through an era referred to as “The Great Resignation”. Hence, the employers are finding it tough to hire and retain workers in a tight labor market. In addition, the employees are also demanding higher wages, flexible working conditions, better benefits and friendly workplace environment. Moreover, employers are facing workers strikes as well. Therefore, the nation’s largest retailer has decided to launch global campaigns for employees. These include education and training program launched for U.S. workers in 2016. Moreover, they are offering a pilot new program in the summer to recent college graduates and students within 12 months of graduating. The program will provide the new graduates with an opportunity to jumpstart their careers.
Aim is to improve delivery network
Walmart will build their proposed fulfillment centers in Joliet, Illinois; McCordsville, Indiana; Lancaster, Texas and Greencastle, Pennsylvania. This may enable them to provide next-day or two-day deliveries to 75% of the total U.S. population. “Our priority is to strategically locate our (fulfillment centers) to pair most effectively with our 4,700 stores and 210 distribution centers. Together, this system of fulfillment assets is optimized to get orders to customers fast and efficiently.” The company said in their official statement.
These new high-tech fulfillment centers will also bring plenty of job opportunities as well. Walmart has planned to hire 1,000 new employees at each of the new fulfillment centers. In addition, the average hourly wage for workers at its U.S. stores, clubs and supply chain now exceeded $17 and is up from $16.40. Currently, Walmart is employing about 2.3 million workers.
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