Home Depot has unveiled a new service across the United States, promising delivery in three hours or less for a wide range of products. This expansion utilises the company’s extensive network, which includes over 2,000 of its stores acting as fulfillment centres.
Delivery Details and Coverage
The express delivery option is now widely available and costs a flat fee of $7 in most major markets, with a $10 charge applicable in Los Angeles. Customers, including both professionals and DIY enthusiasts, do not need a subscription or membership to access this service. According to the company, the rapid delivery is feasible for thousands of stock-keeping units (SKUs), encompassing categories such as plumbing, hardware, paint, and tools. Product pages and the checkout process will indicate which items are eligible for express delivery.
Operational Insights
Jordan Broggi, Executive Vice President of Interconnected Retail, highlighted during an earnings call that most express deliveries are currently accomplished in less than an hour. The service has been tested in select markets over the past few months before expanding nationwide. Home Depot aims to further decrease delivery times as part of its service enhancement goals.
Supply Chain Optimisation
Executive Vice President of Merchandising Billy Bastek reported a 45% reduction in the company’s U.S. delivery lead times over the last 18 months. He also expressed optimism about the current performance and future expansion plans, including increased coverage and more SKUs throughout the year.
Broader Delivery Network
Aside from the express service, Home Depot also operates a delivery network that ensures same-day or next-day delivery for over 65% of in-stock parcel products. Additionally, 55% of larger and bulkier items are delivered within two days. For larger appliance orders, free same-day delivery is available for purchases over $25 if ordered by a certain time. Next-day delivery for appliances currently covers 60% of the U.S. population.
Senior Executive Vice President Ann-Marie Campbell mentioned improvements in the appliance delivery model, allowing select appliances to be stocked and delivered the next day in specific markets.
Reporting based on coverage first published by retaildive.com.