Walmart Launches LTL Consolidation at 42 Hubs, Cuts Logistics Costs
WMT•Walmart launched a prepaid consolidation program enabling suppliers to merge less-than-truckload shipments into trailers at automated centers feeding its 42 regional distribution hubs, reducing pallet and labor costs. Q1 profits fell on rising fuel and transport costs, sending shares down 8.1% in four days – the worst stretch since 2022.
1. Q1 Earnings Pressure and Stock Reaction
Walmart’s first-quarter results showed margins squeezed by rising fuel and transportation costs, prompting an 8.1% share drop post-earnings and extending losses over four days – its steepest such decline since 2022. Growth in e-commerce, advertising and memberships remained solid but could not offset cost pressure.
2. Prepaid LTL Consolidation Program for Suppliers
Walmart introduced a prepaid consolidation program allowing suppliers to merge less-than-truckload shipments under a single national purchase order into trailers at automated consolidation points feeding its 42 regional distribution centers. The initiative promises pallet and labor cost savings, improved order cycles and optimized inventory placement, with participation phased based on volume alignment and capacity expansion.
