How Walmart Tested—and Evolved—Alphabot® to Reinvent Grocery Pickup and Delivery

Meeting the Challenge

As more customers turned to online grocery shopping, Walmart needed a faster, more efficient way to fulfill those orders—especially in-store, where space is tight and speed matters. The company started looking for a technology that could automate this process without disrupting day-to-day operations.

That’s when Alert Innovation came to the table with Alphabot®—a system that combines robotics and smart software to revolutionize how groceries are picked for online orders. Alphabot’s autonomous robots operate inside a compact, multi-level storage structure. They can move in all directions, retrieve items from ambient, refrigerated, and frozen zones, and deliver them directly to associates who pack the orders.

The idea sounded promising. But before moving forward, Walmart needed to see how Alphabot would perform under pressure. Could it handle peak shopping times? Was it reliable? Would it actually save time and money?

Putting the System to the Test

To answer those questions, Walmart teamed up with simulation experts at MOSIMTEC. Together, they built a computer model of the Alphabot system using AnyLogic—a simulation platform that helps businesses test complex systems in a virtual environment.

Instead of relying on spreadsheets and assumptions, this model let Walmart experiment with different layouts, robot behaviors, and order volumes. They could see, in real-time, how the system might perform inside a busy store. And because AnyLogic integrates smoothly with Java, it allowed for rapid development and customization—perfect for a project that needed agility.

In just seven weeks, the team:

• Learned how the Alphabot system works
• Built initial control algorithms for the bots
• Created and tested a working simulation
• Analyzed key performance data
• Presented actionable insights to Walmart leadership

The model was flexible and easy to use. Walmart’s team could adjust everything—from the number of bots to how fast they move, how the storage racks are laid out, and even how orders are assigned. They could run different scenarios and get instant feedback, all through a simple Excel interface.

Real Results

The results were encouraging. The simulation showed that 95% of online grocery orders could be picked in under 8 minutes, with the average pick time coming in at under 5 minutes. That kind of speed meant Walmart could confidently move forward.

In March 2019, the company launched its first Alphabot pilot at a Supercenter in Salem, New Hampshire—a major milestone in its push toward smarter, in-store automation.

“Alphabot is the first and only system designed from the ground up to automate grocery fulfillment inside a store. It’s fast, cost-effective, and built to work across all temperature zones. Plus, since the bots are the only moving parts, the system keeps running—even if one goes down,”
— John Lert, Founder of Alert Innovation

The Next Chapter: Walmart, Alert Innovation, and Symbotic

Walmart clearly saw the potential in Alphabot. In October 2022, it acquired Alert Innovation to bring this technology in-house as part of its Advanced Systems and Robotics (ASR) division.

Fast forward to January 2025, and that journey took another big step.

Symbotic Inc., a leader in AI-powered supply chain automation, acquired Walmart’s ASR business—including Alphabot and the tech behind it. This move wasn’t just about buying technology; it came with a major commercial agreement between Symbotic and Walmart to develop and roll out automation systems at Accelerated Pickup and Delivery centers (APDs) inside Walmart stores.

Under this agreement, Walmart is funding a large-scale development effort to upgrade its current systems and design new ones that can meet future customer needs. If all goes well, Walmart has committed to deploying the system in 400 APDs over the next few years—with the option to add even more.

Walmart will pay $520 million toward this development, including $230 million that was paid upfront at closing.

“We’re thrilled to expand our long-standing partnership with Walmart and extend our automation capabilities into stores. This is a huge opportunity to support the growth of eCommerce and redefine what’s possible,”
— Rick Cohen, Chairman and CEO, Symbotic

Why This Matters

This collaboration is more than just a tech deal—it’s a strategic move to reimagine retail logistics from the ground up. With Symbotic’s deep experience in AI robotics and Walmart’s unmatched retail scale, the partnership sets the stage for faster, smarter, and more reliable grocery fulfillment in stores nationwide.

The evolution of Alphabot—from a promising concept to a real-world solution now backed by two industry giants—is a glimpse into the future of retail.

And that future is already in motion.