Dive Brief:
- Walmart Canada debuted its trucking fleet's first hydrogen fuel cell-powered electric tractor from Nikola — the first of many it plans to acquire, the retailer announced last month.
- The investment coincides with the retailer’s five-year $3.5 billion growth plan designed to drive sales and accelerate deliveries to its 400-plus store Canadian network using green technology.
- Walmart Canada aims to convert more than 400 trucks into a 100% alternatively powered fleet by 2028, aligning with its goal to “embrace new technology and spark change within the industry,” Walmart Canada President and CEO Gonzalo Gebara said in the announcement.
Dive Insight:
Incorporating more clean technology into its daily operations contributes to the company’s overall global goal to have zero emissions by 2040.
Aiding this strategy are two state-of-the-art distribution centers, equipped with technology designed to use less energy while also improving fulfillment center operations. One facility opened in Surrey, British Columbia, in April 2022 while the second in Vaughan, Ontario, is slated to be operational this year. As in-stores sales increase, a more efficient distribution network aims to expedite restocking efforts, Walmart said.
The Surrey facility, which can process 150,000 daily orders to deliver to its network of 45 Walmart stores across British Columbia, also will serve as a future hub for Walmart’s electric fleet.
The Nikola hydrogen truck has an estimated range of nearly 500 miles, nearly double the driving range of Walmart’s three Freightliner eCascadia electric trucks that entered service in December. Fully charged, an eCascadia can travel just under 250 miles.
Walmart is also working with several vendors, including Tesla, to build up its electric vehicle fleet. The retailer has ordered 130 electric tractors with a 500-mile range from the EV manufacturer.
