What Walmart’s tech investments mean for workers and shoppers

Walmart executives say these changes have been possible because of massive tech investments over the years, and more changes are coming. Walmart said this month it plans to hire more than 5,000 tech workers and open tech hubs in Atlanta and Toronto.

Here’s what Walmart’s expansion might mean for workers and shoppers in the future.

Walmart’s tech ambitions

Walmart says it plans to expand its technology hubs and hire thousands of workers across the United States and Canada. The investment is aimed at offering more digital tools to boost convenience for workers and shoppers, the retail giant says.

As part of the expansion plans, the company — whose global tech team grew by 26 percent to 20,000 workers in the last fiscal year, which ended Jan. 31 — will hire cybersecurity professionals, software developers and engineers, and data scientists. All of them will help make workers’ jobs more efficient and create a more personalized experience for shoppers regardless of whether they’re online or in stores, Walmart says.

The Toronto hub, which is expected to be one of the largest of Walmart’s 17 across the world, will employ hundreds of technologists, while 140 will be employed in Atlanta. Thousands of other jobs will be spread across the globe. Walmart said it chose the two cities partially because of the local tech talent and growing regional tech presences. Some tech talent may even come from its own workforce: Employees have the option to earn certifications and degrees for free. The company said 1,500 workers are already pursuing cybersecurity degrees through its Live Better U program.

How will retail jobs change with technology?

For workers, additional tech means flexibility and more tools to make their jobs easier, Walmart says. Workers currently use Walmart’s virtual assistant, Ask Sam, to get answers to questions such as which aisle has Cheerios. They also use an augmented reality feature on their mobile devices to check inventory.

“Retail tech is particularly exciting because of its complex challenges and fast pace of innovation,” said Fazal Khan, vice president of human resources at Walmart Global Tech. “Here, one line of code can impact millions of lives.”

Brandon Fletcher, senior analyst at brokerage firm Bernstein and a former executive at Walmart, said inefficiencies related to workers moving items to and from different parts of the store cost Walmart billions of dollars a year. And in-store workers might someday have more flexibility with when and where they work with more intelligent scheduling systems, he added. Walmart’s employee app already allows for flexible scheduling but does not yet let employees take shifts at different locations.

What does it mean for shoppers?

Walmart says technological advancements in its stores and the data they collect will bring more convenience for shoppers. For example, customers can check their sizing through Walmart’s app with a virtual fitting feature that lets them select from 50 models of different heights, body shapes and skin tones.

Tech improvements might also allow Walmart to use data to better target customers with its other offerings, such as health care and financial services, said Joe Feldman, senior managing director of brokerage firm Telsey Advisory Group. Fletcher said it also could allow Walmart to someday meet rural or suburban shoppers — a demographic he says Walmart dominates — at the airport on demand with toiletries needed for their trips. The idea is to create an ecosystem for customers, meeting their demands where they are, Feldman said.

What does all this tech mean for data collection?

The expansion could usher in a new era — one in which more brick-and-mortar retailers use shoppers’ data across more devices, systems and partnerships, increasing the security risks, analysts say.

“The data is mostly already within Walmart systems,” Fletcher said. “More distributed tech means more points of entry.”

Walmart says organizing the data it collects and doing more with it is equally as important as tech priorities such as cybersecurity and software engineering. Data not only helps the business run more efficiently, but it also could help Walmart’s partners and merchants on its online marketplace make better decisions, said John Forrest Ales, senior director of global communications for Walmart Global Tech. The technology that comes out of its hubs could also help with supply chain challenges, keep employees connected and save shoppers time once a physical space has been determined, he said.

Walmart said the technology it develops doesn’t always require personal data. Meanwhile, it has a team that advises the company on information privacy and how to use and govern data and cybersecurity.

“While technology will continue to change how we operate, it doesn’t change our values,” Ales said. “As we innovate, we want to make sure we’re doing so ethically and responsibly.”

Big retailers like Walmart “are at a point where they know there are more efficiencies to gain by leveraging tech,” Feldman said. “Walmart has tons of data on customers. If they can give better data to [a third-party client like] P&G to better use their advertising [budget], maybe Walmart could get a portion” of the advertising dollars.