The investment is set to be spread out over the next five years to speed up delivery of goods to homes and job sites as the rise of online shopping resets consumer expectations.
The home improvement retailer will add 170 distribution facilities across the US so that it can reach 90% of the US population in one day or less, according to company officials. The new sites will include dozens of direct fulfilment centres for next-day or same-day delivery of commonly ordered products, as well as 100 local hubs where bulky items like patio furniture and appliances will be consolidated for direct shipment to customers.
The push comes as Home Depot is trying to tamp down transportation costs and improve inventory management as it tries to more closely integrate its growing online business with its network of about 2,280 brick-and-mortar stores.
Online orders have accounted for 6.7% of the retailer’s USD 100.9 billion in sales in 2017, but the digital revenues expanded 21% from 2016. About 45% of online orders are picked up inside stores, and the company is rolling out self-service lockers at the front of some stores to speed up order retrieval.
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