Walmart's New Test Stores: AR, Mobile & Checkout Innovations

Walmart has consistently worked to transform its brick-and-mortar locations into efficient centers for fulfilling online orders, and the retailer’s newest group of test stores, revealed today, will explore methods to streamline this evolution. Walmart states that it will assign personnel to four stores throughout the United States to develop and refine innovative technologies and tools designed to benefit both shoppers visiting the stores and those shopping online, encompassing advancements in areas like augmented reality, mobile applications, in-store displays, comprehensive product availability, and modernized checkout processes.

These four locations will function as centers for rapid prototyping, allowing teams to evaluate solutions in real-world conditions, implement adjustments, expand successful initiatives, and discontinue those that prove ineffective. Certain changes will be directly noticeable to customers, while others will operate more discreetly in the background.

Initially, Walmart has pinpointed four key areas for testing new concepts: product assortment, inventory management, order picking, and the checkout experience.

In one store, the company will evaluate shifting the majority of its in-store apparel selection to be available online as well—ensuring the same items are accessible both in the physical store and on the Walmart website. Currently, this isn’t always the case, as the inventory in stores doesn’t always perfectly match the online catalog. This test will concentrate on identifying the necessary steps to make all qualifying items within a store “omni-available,” reflecting Walmart’s ambition to be a truly “omni-channel” retailer.

A second test will introduce a new application designed to accelerate the process of moving merchandise from the stockroom to the sales floor, utilizing augmented reality (AR) technology. Instead of manually scanning barcodes on boxes ready for placement, the app will employ AR to visually highlight those boxes. The goal is to expedite the delivery of products to shelves and into the hands of customers.

Another experiment combines handheld devices and in-store signage to assist employees in efficiently locating items when fulfilling online orders. Preliminary results indicate that this system has already increased the accuracy of first-attempt item retrieval by 20% in certain product categories that historically present locating challenges.

The fourth test will expand upon a previously announced experimental checkout model introduced in June. This store will eliminate traditional checkout lanes, reassigning cashiers to serve as “hosts” within a redesigned area resembling a self-checkout zone. Customers can choose to scan and bag their own purchases or receive full-service assistance from a “host.” Store personnel will be readily available to address any issues that may arise.

The anticipated outcome is a faster checkout process compared to conventional individual lanes. The previous layout could create congestion at the registers if sufficient lanes weren’t staffed during peak times. Ultimately, the new design may allow for a reduction in the number of cashiers needed at checkout stations, freeing up employees to focus on other in-store responsibilities.

The four stores may also explore additional technologies and digital solutions in the future, though Walmart has not provided further details. Two of the test locations are in Northwest Arkansas, including one in Bentonville, and are already operational, with two more scheduled to launch shortly.

Each store will be supported by a team of four new employees dedicated to the prototyping efforts—a product manager, a technologist, a business owner, and a designer.

“We are rapidly leveraging our physical stores to cater not only to in-store shoppers but also to accommodate the demands of online customers in ways that are unique to Walmart,” stated John Crecelius, Walmart U.S. SVP of Associate Product and Next Generation Stores, in a press release. “Our new test stores are designed to identify solutions that enable our stores to function as both physical retail destinations and online fulfillment hubs in a manner not yet seen in the retail sector,” he continued.