![]() This depleted inventory and put pressure on workers. Prior to these distribution centers, orders for professionals were mostly filled from stores. The Georgia center is also located on a rail line, so boxcars carrying as much as four times what a flatbed truck can hold arrive directly. In Home Depot’s Georgia hub, most orders move in and out on flatbed trucks, with merchandise heading to stores or job sites up to 200 miles away. The strategy contrasts with those of retailers such as Walmart and Kohl’s Corp., which increasingly see their stores doubling as fulfillment centers. The company is betting that if it can keep contractors happy, other customers will follow.Īdditionally, funneling the direct-to-contractor business to the facilities is meant to simplify store operations. It’s part of $1.2 billion of investment over five years on supply-chain improvements that started well before the Covid pandemic roiled the world’s shipping markets. Home Depot has built similar distribution facilities in major markets such as Dallas, Baltimore and Miami and more are coming. Home Depot’s market capitalization of $426 billion is more than $40 billion higher than that of Walmart Inc., despite the discount giant’s much greater revenue. Investors are betting on continued success for both Home Depot and Lowe’s, having sent their shares up more than 50% this year, well ahead of the 22% rise of the S&P 500 index. With growth from the do-it-yourself crowd now being outpaced by sales to contractors, the stakes are high to get it right. ![]() The hub is the centerpiece of Home Depot’s plan to ease the complexity of direct-to-consumer sales - and win market share from both its main rival, Lowe’s Cos., and independent distributors. Large bags of mulch and potting mix were a prominent reminder that spring renovation season is on the horizon. Stacks of plywood were piled up toward the ceiling and copper pipes sat atop high shelves. During a recent visit, workers ferried goods around on red Raymond pacers and yellow Caterpillar forklifts. The new facility in Stonecrest, Georgia, which is called a flatbed distribution center, is designed with contractors in mind. That’s become an especially intense problem for Home Depot, as with other retailers, amid the supply-chain crunch that’s upended stocking and transport around the country and the world. They often buy bulky items in vast quantities and want - or rather demand - to receive the orders on a stringent timeline. ![]() is trying to solve a problem that’s plaguing its stores: large orders from pro shoppers.Ĭontractors’ needs are very different than the average customer’s, and while they make up only 5% of Home Depot’s shoppers, they account for 45% of its $132 billion in annual sales. (Bloomberg) - Inside an expansive and noisy distribution center just east of Atlanta, Home Depot Inc. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |