Dive Brief:

• Walmart has released more details for its plans to invest hundreds of millions of dollars this year in store remodels and upgrades across the U.S., according to company press releases.
• Improvements will take place in states including Alabama, California, Florida, Indiana, Maryland, Ohio, Pennsylvania, South Carolina, Texas and West Virginia, reports said. Investments for each state range from $29 million in Maryland up to $173 million in Florida and nearly $265 million in Texas, reports say.
• Walmart will expand customer-focused innovations and remodel dozens of stores in various states. Grocery pickup and delivery will be rolled out to more stores, Walmart Pickup Towers will be added to more locations and in-store robots will be introduced at several stores.

Dive Insight:

Walmart, which has been unleashing new innovations and growing its grocery empire, first shared plans for a nationwide remodel last year as part of an $11 billion spending plan. These new details convey just how many stores will get overhauls and how much money is being invested in each state.

In a presentation to investors last month, Walmart's CFO Brett Biggs made it clear that grocery is one of the company's biggest growth categories — particularly in e-commerce, which the company expects to reach around 35% of sales.

A huge focus this year will be expanding pickup and delivery. More pickup towers, additional locations for pickup and a wider delivery footprint will help Walmart reach even more grocery customers and continue to drive sales both in-store and online. Last month Walmart said that it would expand grocery pickup from 2,000 to 3,000 stores by the end of 2019 and double grocery delivery, which was available at 800 stores at the beginning of 2019.  

The company has not shared any details related to product assortment or specific information about in-store grocery departments and whether or not they’ll be refreshed.

The line between brick-and-mortar and e-commerce grocery business is blurring as companies look to bolster their omnichannel capabilities. These latest efforts show Walmart’s steadfast commitment to maintaining its lead in grocery, especially as competitor Amazon continues to innovate. With news that Amazon will launch its own grocery chain and the e-tailer’s recent price cuts at Whole Foods, Walmart will need to remain vigilant in order to maintain its share of the grocery market, both in-store and online.