The news: Walmart is testing dark stores in Dallas and Bentonville, Arkansas, as part of its broader effort to speed up deliveries, per Bloomberg.

Dark stores look like regular stores, but they’re closed to the public and function as small warehouses stocked with high-demand items. Placing them in densely populated areas helps Walmart fill inventory gaps between retail locations and larger fulfillment centers.

The bigger picture: Dark stores are just one piece of Walmart’s larger strategy to strengthen its online business, which is expected to turn a profit for the first time this year.

Walmart is streamlining its operations, batching more orders together and using automation in warehouses to speed up picking and packing.

It’s broadened its online assortment across a range of price points through its third-party marketplace.

• The retailer has introduced services that simplify selling on its platform—such as enabling sellers to fulfill Walmart orders using inventory from other platforms, including Amazon.
• Innovative partnerships like its collaboration with Rebag have helped reshape how consumers perceive the Walmart brand.