By Alan Wolf, YSN
Is there an orange truck in your customers’ future?
The Home Depot has developed a hearty appetite for delivery and fulfillment services since taking those functions in-house, and the decline of one-time industry leader Sears has only whetted it more.
On an earnings call with investors last month following the release of the company’s fourth quarter financial results, CEO Craig Menear acknowledged that “We’ve had a disruptive attitude in this space for a long time, and that continues to pay dividends as we take share.”
Sears in particular “has been a donor over the years,” he said, as one of the retailer’s once most valuable assets, its Innovel Solutions delivery division, also is faltering.
Menear acknowledged that the No. 1 home improvement chain isn’t alone in the delivery stakes, citing competition from local dealers and regional and multi-regional chains. Nonetheless, “We think there’s still lots of share out there,” he told analysts.
Indeed, Home Depot is ultimately looking to reach 90 percent of the U.S. population, a spokesperson told Business Insider, and to establish “the fastest, most reliable supply chain for home improvement products” by offering same-day and next-day parcel and bulk delivery.
To achieve that, the company will invest $1.2 billion in its supply chain over the next five years and plans to build approximately 150 new distribution centers, the spokesperson said. In addition, Home Depot has opened about a dozen “market delivery operations” or MDOs — its term for large-item fulfillment centers — and has already signed leases for a dozen more, Business Insider reported.