Dive Brief:
- Lowe's is expanding its same-day delivery service nationwide in partnership with omnichannel fulfillment provider OneRail, the companies announced last week.
- In-stock products at nearby stores, including building materials and outdoor living items, can be delivered to job sites and homes in the same day if they are ordered by 2 p.m. local time. For orders placed after 2 p.m., deliveries will be made the next day.
- The service is available for orders placed on Lowes.com or its mobile app. Same-day delivery fees start at $15, with the cost varying based on item size and weight, according to the company’s website.
Dive Insight:
The expansion aligns with the company's "Total Home strategy" to drive long-term financial growth, Lowe's Chairman and CEO Marvin Ellison said in a statement. The plan includes accelerating its online business and positioning Lowe's as a one-stop shop for both do-it-yourself and professional customers.
"Utilizing all of our 1,700-plus stores for online delivery and fulfillment is essential to becoming a true omnichannel retailer," Ellison said.
The home improvement retailer first piloted same-day delivery with OneRail in select markets last year. The capabilities are enabled by the fulfillment provider's "OmniPoint" software platform and network of 12 million drivers, OneRail founder and CEO Bill Catania said in a statement.
Lowe's worked to retool its delivery operations in recent years for more effective e-commerce fulfillment. Beyond its same-day offering, the company has shifted to a more efficient market delivery model for larger products. In a May earnings call, Ellison said this model was in place at more than 1,100 stores.
"We’re pleased that this more efficient model of delivering big and bulky products is already enabling us to accelerate our market share gains in appliances and will enable future growth in other big and bulky product categories," Ellison said.
Rival retailer The Home Depot has made its own strides in delivering e-commerce orders quickly. Jordan Broggi, SVP and president of online for The Home Depot, said in a June investor meeting that beyond same-day delivery and pick-up options from stores, the company can deliver items the next day in a cost-effective manner through its own facilities.
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