Home Depot has invested in new delivery and distribution related initiatives to help build customer loyalty and drive efficiencies across its supply chain. We take a look at what Home Depot's Q1'18 results mean for the company's strategy.
- Home Depot is enhancing its delivery capabilities to minimize costs and keep up with competitors, including Amazon. Home Depot rolled out car and van delivery services to ship product directly from its stores — a faster, lower-cost option for more remote regions of the country. In Q1’18, the company launched same-day delivery in select markets, which helped drive double-digit growth in the delivery business for the quarter.
- The company is targeting its professional customers (Pros) with its rollout of new delivery services. On-site delivery is especially appealing for Pros, who tend to have larger, more complex projects. In Q1’18, the company noted that delivery enhancements brought in incremental business from both old and new Pro customers.
- Even as the delivery business grows, the physical store still matters. When asked about whether enhanced delivery services will marginalize the Home Depot physical store, EVP of Supply Chain Mark Holifield noted that stores will still play a significant role in delivery origination, especially in smaller markets that are farther from the company’s flatbed distribution centers.