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The expanded introduction of robots to perform in-store and logistics operations suggests both opportunities and threats to the workers who currently do those jobs. Walmart’s announcement that it would be adding approximately 4000 robots throughout its stores brought made both types of potential outcomes vibrantly clear.
On the one side, the robots are doing repetitive, unskilled work that many employees dislike, such as cleaning floors and monitoring inventory. Today, human employees drive floor-scrubbing machines up and down store aisles; after the robot rollout in approximately 1,500 stores, these employees can skip this task and perform other maintenance duties instead. Automatic conveyer belts in distribution centers also mean that it only takes half as many workers to unload trucks, such that the center can get more products unloaded and inventoried more quickly.
On the other side though, the replacement of workers with machines inevitably raises fears of job losses. If fewer workers are needed to clean, review inventory, or move products through distribution centers, Walmart might hire fewer people or even lay off some current workers. As the robotic technology spreads and takes on more tasks, these risks grow, implying the potential for a radical shift in employment trends. According to one external study, there is virtually no chance that retail sales jobs will continue to be staffed primarily by human workers. In this sense, the mechanization of retail might appear nearly inevitable, and Walmart’s introduction of robotic workers is the next step along this path.
Naturally, Walmart highlights the upsides and downplays the downsides. In particular, it notes that the greater efficiency created by the robotic functionalities support its efforts to increase workers’ wages. Starting workers currently earn $11 per hour, but moves by competitors such as Target, Costco, and Amazon suggest that if it wants to compete for good workers, Walmart will need to raise those wages even higher. Furthermore, it insists that by eliminating redundant, boring work like floor scrubbing, the robots actually make workers’ jobs more enjoyable, because they can devote more time to other projects and tasks. In particular, they might be able to interact more closely and personally with shoppers, which would provide the added benefit of enhanced service levels. Finally, Walmart predicts that rather than reducing its payrolls, it will need to hire more people to facilitate its growing online commerce operations. Thus it hopes to expand workers’ skills sets, by giving them more meaningful jobs to do.
Discussion Questions:
- What are the advantages and disadvantages of substituting robots for humans at Walmart?
- Take a side and defend it.
Source: Sarah Nassauer and Chip Cutter, The Wall Street Journal, April 9, 2019. See also Caroline Jansen, “Walmart Adds Nearly 4K Robots to Stores,” Retail Dive, April 10, 2019
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