Dive Brief:
- The Home Depot is opening four new distribution centers in Detroit, Los Angeles, San Antonio and Toronto in the first half of this year, according to a March 14 press release.
- The openings are part of the retailer’s larger strategy to better serve its pro customers, and will stock large, bulky merchandise like lumber, insulation and roofing shingles.
- Home Depot is already operating similar pro-focused hubs across the country, and expects to have 17 of its top pro markets equipped with new capabilities by the end of the year.
Dive Insight:
The new distribution centers are part of a push to improve service offerings, experience and inventory for pro customers.
"Over the last several years, we have been investing to deliver a faster, more convenient, differentiated experience for our pros,” Chip Devine, SVP of outside sales, said in a statement. “Our distribution network is one piece of the comprehensive pro ecosystem we’re building to better meet the needs of this important customer.”
The Home Depot currently has a variety of fulfillment and delivery options for its pro customers, and plans to expand its offerings. This includes digital tools like new order management capabilities to better navigate complex pro orders.
The retailer has been leaning on distribution centers to deliver pro orders directly to jobsites. The initiative reduces the amount of time store associates have to spend picking and packing items, and also helps boost in-store product availability.
The Home Depot has also been making efforts to transform its supply chain in a bid to strengthen efficiency and lower costs. Last year the retailer announced plans for a $500 million cost savings push to help reduce its supply chain holding capacity. While many initiatives were focused on fulfillment and delivery, the retailer also leveraged technology to save costs and increase productivity across its supply chain.
