Home Depot offers nationwide express delivery from local stores

The Home Depot on Tuesday announced the nationwide rollout of express delivery, expanding the service by using more than 2,300 stores as local fulfillment centers for both professional contractors and do-it-yourself customers.

Express delivery previously was available in some markets. The home improvement retailer said nearly every item in its stories is available for delivery in three hours or less for a small flat fee, with no subscription or membership required. It expects to add even faster delivery speeds in the months ahead.

“The majority of those deliveries are actually happening in less than one hour,” said Jordan Broggi, executive vice president of customer experience and president of online, during a conference call with analysts to discuss the company’s second-quarter results.

Home Depot (NYSE: HD) promotes itself as the fastest fulfillment home improvement brand. Many retailers are increasingly offering fast-delivery from stores and relying on app-connected freelance drivers to make the delivery and give customers an extra level of convenience. E-commerce experts say having the ability to offer fast delivery allows retailers to convert many shoppers into buyers. Bookstore Barnes & Noble, Carter’s and Kohl’s on Tuesday announced they were making their products available on the DoorDash marketplace, which becomes another sales channel and way to instantly book a delivery.

In the spring, DoorDash expanded its presence in the apparel sector through partnerships with Urban Outfitters, Dolce Vita, Rally House and Steve Madden. DoorDash began offering last-mile delivery for Dollar Tree at more than 9,000 stories in May. DoorDash now has tens of thousands of national retail stores connected to its marketplace. DoorDash recently signed with Shopify to offer delivery for small retailers. In April, Ace Hardware picked Uber Eats to handle last-mile delivery from its stores.

(Why It Matters: The trend of in-store fulfillment diminishes demand for network carriers like FedEx and UPS, which are cutting back on low-margin B2C parcel delivery to focus on more profitable customers.)

“Customers expect products to be available when and where they need them, and Express Delivery helps us meet that expectation with a fast, reliable solution,” said Jordan Broggi, executive vice president of Interconnected Retail, in a news release. “Whether you’re a DIYer who needs one more bag of fertilizer to finish the yard or a Pro running short on adhesives and caulk for a time-sensitive job, Express Delivery makes it easier than ever for our customers to get the supplies they need, right when they need them most.”

Free same-day delivery is available for orders of $25 or more made before 4 p.m.

Home Depot also can deliver thousands of items, like lighting and building materials, as quickly as the same day from its network of delivery centers. Over the last 18 months, Home Depot has reduced delivery lead times by about 45% in the U.S. Two-thirds of in-stock parcel orders arrive same-day or next-day and 55% of big-and-bulky items arrive within two days.

Home Depot also stocks a select assortment of appliances that can reach customers the next day in many markets, accommodating demand for direct purchases with changes to its supply chain.

The retailer is using automation to speed product flow at its fulfillment centers and meet same-day and next-day commitments.

“Delivering the best interconnected experience is a key component of our strategy, and our faster delivery speeds are resonating with customers and driving greater engagement,” said Billy Basteck, executive vice president of merchandising on a call with analysts to discuss the company’s second-quarter results. “Going forward, we will continue to further optimize fulfillment across all of our assets.”

As a result of its investments, Home Depot says it is now able to provide next-day delivery coverage on key SKUs to nearly 60% of the population.

Home Depot reported net income of $4.8 billion, up from $4.6 billion, in the prior-year period. Adjusted diluted earnings were $4.92 vs $4.68 per share. Revenue was up 5.7% to $47.9 billion.

Management said the company received $730 million in tariff refunds at the end of June from the U.S. government for duties the Supreme Court ruled were not allowed under the Constitution, with about $685 million offsetting costs during the second quarter.

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Write to Eric Kulisch at ekulisch@freightwaves.com.

Home Depot offers nationwide express delivery from local stores

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