“We expect FY '24 CapEx to be flat to up slightly in total dollars compared to last year as we continue the multiyear investment in technology and innovation to optimize our supply chain in stores.”

In context

“fulfillment as a service. We're providing more convenience for customers, including pickup and delivery, Scan And Go and Walmart+. We're working in partnership with our suppliers and sellers to use data, scaled fulfillment capabilities and our rapidly growing ad platform to elevate inventory accuracy and in-stocks, lower the cost to serve and drive improved conversion. All of this improves the trajectory of our ROI and our margin profile. We will continue to invest in our associates through increased pay and benefits to reinforce the ladder of opportunities at Walmart. But we're managing our costs in a way that allows us to achieve our operating income goals with these investments. In other words, we're staying true to our commitment of everyday low cost, enabling everyday low prices. We expect FY '24 CapEx to be flat to up slightly in total dollars compared to last year as we continue the multiyear investment in technology and innovation to optimize our supply chain in stores. Many of these tech enhancements are reaching the stage where we can rapidly deploy them across our network, and we have clear line of sight toward better efficiencies and ROI on these investments in the medium term. I want to call out a few other assumptions for our guidance for the year. Gross margin rate is expected to increase this year, though not back to FY '22 levels yet. We expect gross margin to benefit from the lapping of higher supply chain costs and markdowns from this past year as well as growth from our newer initiatives, many of which have a higher profit margin. Partially offsetting this, we expect product mix and inflation-related LIFO charges to be gross margin headwinds. Based on current assumptions for inflation, LIFO charges for both Walmart U.S. and Sam's Club cou”