It’s undeniable that the way consumers are shopping right now has vastly changed. With the ongoing pandemic, more people are purchasing online and having deliveries made directly to their homes. Because of this new reliance, it can prove extra frustrating for shoppers when delivery delays are experienced; Home Depot (HD) is looking to change this.
Last week, Home Depot announced that it would be expanding over the next 18 months to open three more distribution centers in the Atlanta area. According to the home improvement giant’s VP of supply chains, Stephanie Smith, it’s come more into perspective recently that the way people shop has changed significantly within the past 40 years. Smith goes on to note that it’s apparent that “Customers expect to shop whenever, wherever, however they want.”
While Home Depot has been rising to meet the increasing needs of customers since March of this year by providing things like curbside pickup, there has been a noted increase of 80% in online purchases in this year’s first quarter. This increase equates to about $4.2 billion in sales and now means that internet sales account for about 15% of Home Depot’s net sales.
In conjunction with opening up new distribution centers, Home Depot also intends to soon offer same-day and next-day deliveries to 90% of its customers in the U.S. Currently, only 50% of customers in the U.S. have access to same-day or next-day delivery from Home Depot.
At the time of this article’s writing, Home Depot stock was up 0.83% to $273.90.
Disclosure: I/we have no positions in stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.