JIAXING, China, September 17, 2026 – Walmart China today signed a project agreement with government authorities in Jiaxing, Zhejiang Province, to develop the Walmart China East China Smart Logistics Hub. Representing Walmart's largest single supply chain investment since entering China 30 years ago, the project will comprehensively upgrade and rebuild the existing Walmart China Jiaxing Distribution Center on its current site. Construction is expected to begin in 2026, with the facility scheduled to open in 2029.

Located in Jiaxing's Airport Economy Pilot Demonstration Zone, the upgraded hub will span five buildings and grow from approximately 48,000 square meters to 278,000 square meters of gross floor area, boosting daily processing capacity roughly fourfold. The campus will blend automation with manual operations, deploying a four-way shuttle smart storage solution, automated picking equipment and an intelligent scheduling system. By linking the distribution center directly with e-commerce fulfillment, the hub will create a unified omnichannel inventory pool serving both stores and online channels—transforming from a regional distribution node into a digital, intelligent supply chain hub for East China and the nation.

Oommen Thomas, senior vice president of supply chain and realty at Walmart International, and Anthony Tsu, senior vice president of supply chain and product at Walmart China, joined associate representatives from the Jiaxing Distribution Center for the project's groundbreaking ceremony.

Speaking at the signing ceremony, Tsu said: "This year marks Walmart's 30th anniversary in China. The East China Smart Logistics Hub marks a systemic leap in our supply chain capabilities and a strategic investment that reaffirms our long-term commitment to this market. By bringing together world-leading automation and our proprietary intelligent scheduling on a single hub-scale campus, we aim to dramatically improve fulfillment speed and responsiveness across East China and beyond, while redefining inventory productivity and customer experience through a fully integrated omnichannel, single-inventory model. Walmart has always been committed to being people-led and tech-powered. As we upgrade our supply chain, we are also advancing skills training and role transitions so that technology upgrades empower our frontline associates. Through continuously upgraded digital and intelligent supply chain infrastructure, we are building a more resilient and sustainable foundation for the next 30 years."

Zhang Xifeng, secretary of the CPC Xiuzhou District Committee in Jiaxing, said the project represents both a strategic deepening of Walmart's China presence and a powerful endorsement of Jiaxing's business environment, industrial strengths and growth potential. "We will support Walmart at every stage of this project and work to accelerate construction for the earliest possible completion. We look forward to expanding our practical cooperation into cross-border trade, smart logistics and the airport economy. "

Building A Hub-Scale Smart Supply Chain Campus: Physical and Digital in Parallel

East China is one of Walmart China's most important regional markets. The Jiaxing Distribution Center has operated reliably for nearly 20 years, serving as a regional distribution hub, an import storage and distribution point, and a shared facility for Walmart stores and Sam's Club locations. As both formats continue to grow in East China, this upgrade goes far beyond a warehouse expansion—it is a synchronized push to advance physical infrastructure and digital integration, consolidating capabilities proven across Walmart's global and China operations into one hub-scale campus.

On the physical side, three automated buildings will deploy four-way shuttles for high-density pallet storage focused on imported goods, while two manual-operation buildings will handle cross-docking and fast-moving consumer goods, striking the right balance between efficiency and flexibility. Automated picking equipment and intelligent scheduling algorithms will orchestrate high-density storage, high-frequency picking and dynamic in-warehouse scheduling, with cases per hour (CPH) projected to rise approximately 50% post-upgrade.

On the digital side, Walmart will build a proprietary core orchestration platform on top of proven technologies, integrating equipment, inventory, orders and transportation capacity into a single algorithmic command center. This will enable end-to-end scheduling—from suppliers inbound and in-warehouse movement through order processing and outbound shipping. During peak seasons such as Mid-Autumn Festival and Chinese New Year, the distribution center will increasingly rely on algorithms to dynamically allocate capacity, strengthening supply chain resilience, responsiveness and self-optimization while delivering a more stable, efficient experience for customers and members.

Rooted in the Yangtze River Delta, Serving Nationwide

Walmart China's decision to make this strategic investment in Jiaxing reflects the city's growing urban capabilities and hub functions. As Zhejiang's gateway for Yangtze River Delta integration, Jiaxing is emerging as a key regional central city. With Nanhu Airport launching as the Yangtze River Delta's first specialized air cargo hub, and with international cargo routes, bonded warehouses and customs facilities clustered nearby, Jiaxing's international logistics connectivity is strengthening. The site's proximity to Shanghai and the Port of Shanghai, combined with integrated road, air and sea links, offers compelling advantages for centralized import intake and rapid nationwide distribution. The project is also expected to catalyze local development in smart equipment, digital technology services and green energy, cultivate smart logistics talent, and inject fresh momentum into Jiaxing's industrial upgrading and consumption growth.

After the upgrade, the East China Smart Logistics Hub will evolve beyond a regional node into a critical national supply chain platform. It will consolidate warehousing resources previously scattered across multiple sites into a single campus, driving operational efficiency gains. It will also assume greater responsibility for nationwide distribution of imported goods, operating in concert with Walmart's national distribution centers, e-commerce fulfillment centers, cloud warehouses and dark warehouses. During consumption peaks or market disruptions, the national network can tap this highly automated node to rapidly redeploy inventory and capacity, bolstering the resilience, responsiveness and recovery speed of Walmart China's entire supply chain.

Green by Design: Building a Low-Carbon Campus

Green development principles are embedded throughout the planning and full operational lifecycle of the East China Smart Logistics Hub. The project is designed and built to China's Three-Star Green Industrial Building standard, integrating natural light and ventilation, using energy-efficient warehouse equipment and deploying campus-level energy monitoring to significantly improve overall energy efficiency.

Rooftop solar PV will be deployed across the campus, with the clean energy generated expected to cover a substantial portion of the hub's electricity needs and reduce carbon emissions considerably each year. Walmart will also continue to improve vehicle load efficiency, expand new-energy fleet deployment and optimize route planning to reduce empty miles and waste, steadily lowering carbon emissions per unit of throughput and supporting the company's transition to a regenerative company.

Looking ahead, Walmart will continue to meet the evolving needs of Chinese consumers by deepening supply chain capabilities and technology investment, working closely with government, suppliers and partners to build a more efficient, reliable and sustainable supply chain and laying a stronger foundation for long-term growth in China.