Maya Lanzone , Consumer Reporter

Published: 11:29, 16 Oct 2025

WALMART is in the process of rolling out new digitally-savvy sensor technology, currently deployed in 500 locations.

The retail giant is looking to expand its use of the tech, deploying millions of sensors on its pallets so it can track where its merchandise is located in real-time.

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Walmart is rolling out new sensor technology, aiming to deploy it in all of its storesCredit: AFP

The ambient Internet of Things, or IoT, sensors are being integrated throughout Walmart’s huge US supply chain, with the retailer plotting to reach its entire store fleet of 4,600 locations by the end of next year.

The tech vendor, Wiliot, said that it is the largest deployment of ambient IoT technology in the retail sector, in a press release earlier this month.

The battery-free sensors draw power from sources like radio waves, light, motion, and heat, providing a cost-efficient and low-maintenance solution for supply chain management on a massive scale.

When combined with Walmart’s advanced AI systems, the collaboration is aimed at “dramatically” enhancing the retailer’s supply chain efficiency and inventory accuracy by providing real-time insights into inventory management.

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The technology will cover roughly 90 million pallets of inventory when at full scale, per estimates, so Walmart will know exactly where its merchandise is located across its store fleet and over 40 distribution centers, as well as whether it’s owned by the retailer.

In addition to location, the sensors capture signals regarding the temperature, humidity, and dwell time of pallets, which are linked with Walmart’s AI systems.

“This data provides proof of delivery, improves replenishment decisions, and lets us know where our items are in real time,” Greg Cathey, senior vice president of transformation and innovation at Walmart, told CNBC.

“By combining continuous sensing with AI, we’re moving from probabilistic predictions to precision decision-making,” he added, noting that Walmart is currently focused on rolling out the tech in the US but is considering expansion to other global markets.

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The tech initiative has already made a major impact for Walmart by eliminating certain manual tasks and providing automated alerts, per the press release.

Employees no longer have to perform time-consuming checks to locate items as the automated alerts flag that information in real-time, permitting staff to act quickly and spend more time serving shoppers.

Better visibility into Walmart’s supply chain has also helped to fix inventory discrepancies, boosting the customer experience.

“Customers [will] benefit from better product availability and consistency,” Cathey told CNBC.

Although the retailer has yet to share specific figures regarding the money it will save due to the ambient IoT sensors, Walmart is expecting savings thanks to greater supply chain efficiency, heightened inventory accuracy, reduced manual tasks for workers, and the ability to get merchandise on shelves quicker.

“We’re not only optimizing our supply chain to make faster, smarter inventory decisions, but we’re also tackling one of the hardest problems in retail – knowing exactly what we own and where it is at any given moment,” Cathey said in the release.

What are IoT sensors?

Ambient Internet of Things, or IoT, sensors are a new class of cheap and often battery-free sensing devices that integrate into everyday objects.

They mainly operate by drawing energy from ambient sources such as radio waves, light, heat, or motion.

These sensors allow for deployments on a huge scale without the need for maintenance or battery replacement.

IoT sensors are designed to provide real-time data such as location, temperature, and humidity, revolutionizing supply chain tracking and logistics.

“This enhanced visibility helps us deliver the consistent value, quality, and experience our customers expect – and that’s what drives us every day.”

Prior to its deployment of ambient IoT sensors, Walmart has used Radio Frequency Identification, or RFID, since 2004, but this wireless technology had tags that were much more expensive and less accurate.

“Supply chain AI has long been fueled by inherently out-of-date data – or forecasted data that represents projections rather than reality,” Julien Bellanger, president of Wiliot, told CNBC.

And while RFID has had an “enormous” impact, the cost of the technology prevented a widespread transformation of supply chain operations, according to Bill Ray, chief of research at research firm Gartner.

“The industry has been able to integrate the new, lower-cost tags into the same value models, and come up with positive answers,” he told the outlet.

As Walmart rolls out millions of the new ambient IoT sensors, read up on the other tech-savvy changes it has underway.

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Walmart is currently integrating ambient Internet of Things, or IoT, sensors throughout its massive US supply chainCredit: Alamy