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Walmart is opening five automated distribution centers as it tries to keep its grocery dominance

The facilities are part of Walmart's broader effort to modernize its supply chain and expand capacity to keep up with customers' online orders.

Walmart said Wednesday that it will open five automated distribution centers for fresh food across the country, as the retailer chases efficiency and its online grocery business grows. In an interview with CNBC, Dave Guggina, executive vice president of Walmart's supply chain, said the automated facilities give the company a more precise picture of its inventory and allow it to get groceries to stores faster. That allows Walmart to operate more cost-effectively by better predicting demand and reducing money spent on "safety stock," extra product kept in a warehouse or back of the store to avoid running out completely, he said.

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