The news: Walmart will spend billions of dollars to upgrade and expand its store network this year.

The retailer will remodel over 650 Supercenters and Neighborhood Markets and plans to open around 20 stores through early 2027—it’s already opened four this year.

Why it matters: While Walmart’s sales have risen at a healthy clip over the past several years, growth in the most recent quarter was led entirely by ecommerce gains, which helped make up for a decline in in-store comparable sales. Upgrading the store experience could help rebalance growth while also providing benefits to Walmart’s ecommerce business.

• The upgraded stores will feature wider aisles and updated layouts, as well as larger assortments and “eye-catching displays.” These changes will make Walmart a more appealing place to shop and make it easier for pickers to put together online orders, which will improve efficiency and delivery times.
• The refreshed locations will also have expanded pickup and delivery services in addition to more digital touchpoints where shoppers can explore Walmart’s online selection.
• Walmart is also looking to give customers more reasons to visit its stores. The retailer is adding private consultation rooms to its pharmacies and vision centers, as well as expanding deli and hot bar selections in many Neighborhood Markets.

Implications for Walmart and the retail landscape: Walmart isn’t the only retailer to understand that store investments are necessary to support growth.

• The bulk of Albertsons’ more than $1.8 billion in capital expenditures last year went to store remodels and openings, and the grocer plans to increase its pace this year.
• Target aims to open over 30 stores this year and remodel more than 130 as it looks to reclaim market share.
• Even Amazon is preparing to open its own superstores, underscoring the value of physical retail as both a customer touchpoint and an opportunity to drive greater ecommerce efficiency.

Physical stores are no longer just a sales channel—they’re increasingly central to fulfillment, helping retailers lower delivery costs and speed up online orders. At the same time, investments in layout and experience can drive traffic and defend market share by offering convenience and immediacy that ecommerce alone can’t match. As more retailers ramp up spending, store quality is emerging as a key competitive differentiator.