Home Depot to Spend $1.2B on Supply-Chain Overhaul

Retailer will add distribution sites, shipping hubs to speed delivery to most of the U.S. market within a day

Wall Street Journal
A Home Depot Distribution Center in Tolleson, Ariz.
A Home Depot Distribution Center in Tolleson, Ariz.
Graycor Construction

Home Depot Inc. 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 home improvement retailer will add 170 distribution facilities to its network of about 2,280 brick-and-mortar stores across the U.S. so that it can reach 90% of the U.S. population in no more than a day. 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.

It's part of an $11 billion plan to re-engineer the company that includes building about seven e-commerce fulfillment centers to stock hundreds of thousands of products for shipment to consumers’ homes or job sites.

(more on Home Depot distribution construction . . . )