U.S. retail giant Walmart (WMT) could spend close to $1 billion over the next decade automating its e-commerce and fulfillment processes.
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Deal Figures
Ranpak (PACK), which is a sustainable packaging automation solutions, AI vision, and robotics business, revealed a major expansion of its existing relationship with Walmart earlier this year.
Under the terms of that deal, Walmart will install numerous AI-powered Ranpak AutoFill systems across its five Next Generation Fulfillment Centers. The aim is to speed up the fulfillment process for customers, reduce packaging waste, and simplify work for its staff.
There were no figures shared at that announcement, but in its Q3 earnings report today Ranpak said that Walmart could spend $700 million in the next decade on automation.
In combination with Ranpak’s eight-year tie-up with Amazon (AMZN), Ranpak CEO Omar Asali said the company sees potential for “over a billion dollars in revenue from these two customers alone over the next eight to 10 years.”
“I think you will see Walmart relatively quickly become probably the second largest customer we have, and there’s quite a bit of room to grow in terms of their annual spend with us, with impact expected to begin in Q4, growing in 2026 and beyond,” Asali said.
Walmart Moves
He added that Ranpak would be a beneficiary as Walmart invests further in e-commerce and fulfillment. “Some of our projects are in their next-generation facilities, so it’s related to their build-out there,” he said.
Asali also said Ranpak expects that each AutoFill void fill and package closing unit placed with Walmart will consume over $100,000 of paper per year, “which we believe should lead to a solid recurring revenue stream.”
Walmart has ramped up its AI offerings and partnerships this year. It recently partnered with OpenAI to bring AI into more parts of its retail experience via ChatGPT and a new feature called Instant Checkout. This builds on Walmart’s existing AI assistant, Sparky, and allows shoppers to start a conversation, find items, and complete their purchase in one smooth interaction.
These moves as well as more customers looking for value options during tough economic times have helped the Walmart share price climb this year – see above.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $129. WMT stock’s consensus price target is $115.93, implying a 13.25% upside.
