Walmart's $730M Lancaster Facility Marks Shift in Fresh Food Distribution

Walmart just opened a massive perishable distribution center in Lancaster, Texas—and it’s not just about getting groceries to stores faster. The 730,000 square-foot facility represents a fundamental rethinking of how major retailers handle supply chains for fresh and frozen goods.

The Scale: Double the Capacity

Here’s what makes this Walmart distribution center stand out: it can process more than twice the volume of traditional distribution hubs. Located just 15 miles south of Dallas, the Lancaster facility receives fresh produce, eggs, dairy, flowers, and frozen goods, then ships them to nearby Walmart stores with significantly faster turnaround times.

This is Walmart’s second state-of-the-art facility in Lancaster (following a fulfillment center that launched in 2023), and it’s the second of five new high-tech distribution centers the company is rolling out. The speed advantage isn’t minor—advanced robotics and automation systems handle the complexity that used to require heavy manual labor.

How the Tech Actually Works

The innovation isn’t flashy, but it’s efficient. Automated systems build store-ready pallets by department, with fragile items like eggs and yogurt positioned at the top. This reduces manual stacking, maximizes truck space, and cuts transportation costs. Those savings flow back to customers through lower prices.

The result? Fresh items hit store shelves faster than traditional methods allow, and logistics costs drop.

Jobs and Skills Training

Beyond logistics optimization, the Lancaster distribution center is creating 500+ full-time positions. These aren’t just warehouse jobs—they include automation equipment operators and tech-focused roles that require workers to manage advanced robotics systems.

Full-time employees qualify for comprehensive benefits: medical, dental, and vision insurance, 401(k) matching, paid time off, and access to Walmart’s Live Better U tuition-assistance program for college degrees.

The Bigger Picture

In fiscal year 2024, Walmart and its foundation invested over $159 million in Texas communities. With 176,000+ associates across 590 retail locations in Texas, the company spent $100.8 billion with local suppliers, supporting 300,000+ supplier jobs statewide.

The Lancaster distribution center is part of Walmart’s broader supply chain transformation—a strategy designed to keep its 4,600+ stores stocked with fresh merchandise while creating skilled employment opportunities in the regions where it operates.