Walmart Doubles Down on Tech to Reinvent the In-Store Experience
Walmart used its Q2 fiscal 2026 earnings call to reinforce the company’s commitment to physical retail as a core component of its omnichannel strategy.
Executives emphasized how new artificial intelligence capabilities, operational improvements and enhanced associate tools are making stores more efficient and integral to the customer journey.
The bottom line: In an increasingly digital world, Walmart's earnings call delivers a clear message: the physical store is not fading away. Instead, it's undergoing a sophisticated, tech-driven evolution, becoming a smarter, more efficient and more integral part of a seamless customer journey.
AI Takes Center Stage
Walmart's commitment to AI is escalating, moving to a more integrated, "agentic" approach. CEO Doug McMillon said on the call the company's is embedding "agents into the core of how we operate," including four "super agents" that will orchestrate numerous smaller agents experienced by customers, associates and other stakeholders.
- Sparky, a customer-facing assistant in the Walmart app evolving into a central hub for discovery, shopping, reorders and returns. It's evolving from traditional search to an "agentic" platform. McMillon said it's becoming "an indispensable part of how people shop."
- An associate-facing super agent consolidating critical information such as scheduling, sales data and task management.
- A supplier/seller/advertiser agent streamlining operations such as onboarding, order management and campaign execution, including through its retail media platform.
- A developer agent designed to accelerate testing and product launches across the business.
Additionally, Walmart created new leadership roles to accelerate AI adoption, with Daniel Danker named head of AI acceleration, product management, design and prioritization, reporting directly to McMillon. A new role focusing on AI platforms has also been created under Chief Technology Officer Suresh Kumar.
“This is just the beginning of how we’ll deploy AI over time,” McMillon told investors. "We see lots of opportunities, whether that's with digital twins of our facilities, which can help predict or prevent issues before they happen or the accuracy of dynamic delivery windows, which will be provided to 95% of U.S. households by the end of this year."
Sam's Club Pilots Digital-First Stores
Sam's Club continues to test technology that blends physical and digital experiences. At its new Tempe, Arizona, location, President and CEO Chris Nicholas highlighted high adoption of Scan & Go and computer vision-powered “Just Go” exit arches, with more than 40% of weekend shoppers using the tools. Nicholas said these features not only simplify shopping but also appeal to younger consumers and support new member acquisition.
Operational Focus Remains Key
Walmart U.S. President John Furner said inventory levels and back rooms are “in great shape,” supporting strong execution heading into the holiday season. Furner also noted that stores are speeding up fulfillment, with about one-third of deliveries from stores now completed in under three hours, and Sam’s Club reporting double-digit growth in curbside pickup.
Stores as Omnichannel Hubs
McMillon reiterated that stores remain a competitive advantage in Walmart’s digital race. The combination of a nationwide physical footprint, robust supply chain and associate-led service culture positions Walmart to capture demand across channels.
This "omni nature" of the business, as he put it, is what allows Walmart to understand customer intent and then "close it out" by fulfilling orders across its vast assortment.
