- Home Depot said during an earnings call on Tuesday that it will offer next-day parcel delivery to 50% of the US population by the end of the quarter.
- Mark Holifield, executive vice president of supply chain and product development, told investors that whittling down average delivery times helps to win over customers.
- To further boost its shipping capabilities, Home Depot has partnered with startups and built up new fulfillment centres.
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Home Depot is upping its delivery game, and some customers could see the results in a few months.
Mark Holifield, Home Depot’s executive vice president of supply chain and product development, said during an earnings call on Tuesday that next-day parcel delivery will be available to 50% of the US population by the end of the quarter.
“Our delivery keeps getting faster,” Holifield said in response to a question from Robert C. Baird and Co. managing director Peter Benedict. “That’s very important because our data shows that every time we take time out of the delivery lead time, we increase conversion.”
Home Depot’s expansion of its delivery capabilities is just the latest move to come out of retail’s shipping wars. Walmart and Amazon are duking it out in the battle to offer shoppers fast, cheap, and convenient delivery options, but it’s a movement that’s affecting the entire industry.
Home Depot’s latest efforts center on parcel shipping. At the moment, according to Holifield, Home Depot offers two-day or faster parcel shipping to 90% of Americans, while the chain touts next-day shipping for 36% of the population.
Home Depot offers same-day and next-day delivery via car to 40% of US shoppers, while same-day and next-day delivery via van is an option for 70% of the population. To boost these efforts, Home Depot teamed up with third-party shippers Roadie and Deliv to facilitate same-day and next-day coverage in major US cities last year.
Holifield said that the company’s newest fulfillment centres in Dallas and the greater Seattle area, as well as renovations to Home Depot’s Hagerstown, Maryland, fulfillment center, will also assist the retailer in its quest to offer faster shipping to more customers.
He added that Hagerstown’s “proximity to the to the population centres of the Northeast” will “get us to next-day delivery of parcels to 50% of the US population by the end of this quarter.”
“What that means for customers is we’ve got same-day delivery available for orders placed by 2 p.m. and next-day after that time,” Holifield said.
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