Performance‑Based Raises Introduced for Hourly Workers
Walmart is shifting its hourly pay raise model in the U.S. to incorporate performance‑based metrics alongside traditional tenure‑based increases.
The new structure, set to take effect in early 2026, will allow more than 500,000 frontline hourly associates to earn raises up to 5% based on criteria such as attendance, teamwork, and store performance, in addition to years of service.
This adjustment reflects employee feedback seeking clearer expectations and greater influence over their earnings. Walmart will provide digital dashboards where workers can track their performance metrics in real time.
Tenure remains a key baseline factor, with longer‑serving employees receiving higher baseline raises that can still be adjusted based on performance scores.
Supply Chain Expansion Through High‑Tech Distribution Centers
On the logistics front, Walmart is continuing its multi‑year expansion and modernization of its distribution network, particularly in high‑tech and perishable supply chain infrastructure.
The company is investing in multiple new automated distribution centers and upgrades to existing facilities aimed at doubling storage and processing capacity while enhancing efficiency with robotics and automation.
These high‑tech perishable distribution centers — including recently opened sites in Wellford, South Carolina and others planned across the U.S. — support faster delivery of fresh and frozen products to stores and customers.
These operational changes illustrate Walmart’s broader strategy to balance workforce incentives with advanced logistics as it adapts to evolving retail demands and competitive pressures.
