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The Wall Street Journal reports that Home Depot “plans to spend $1.2 billion over the next five years to speed up delivery of goods to homes and job sites as the rise of online shopping resets consumer expectations.” The plan is to “add 170 distribution facilities across the U.S. so that it can reach 90% of the U.S. population in one day or less … . The new sites will include dozens of direct fulfillment centers for next-day or same-day delivery of commonly ordered products, as well as 100 local hubs where bulky items like patio furniture and appliances will be consolidated for direct shipment to customers.”

Mark Holifield, Home Depot’s executive vice president of supply chain and product development, says that “the retailer is realigning its supply chain to a changing retail landscape. Customers ‘expect delivery to be free, they expect it to be timely … Sometimes they want it fast, and are willing to pay for that. Sometimes they want it free, and they’re willing to wait for it. We need to have the right options there’.”

The Journal writes that “online orders accounted for 6.7% of the retailer’s $100.9 billion in sales last year, but the digital revenues expanded 21% from the year before. About 45% of online orders are picked up inside stores, and the company is rolling out self-service lockers at the front of some stores to speed up order retrieval.”
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