Report: Home Depot to spend $300 million on tech, new DCs, same-day shipping
Atlanta – The Home Depot reportedly plans to invest $300 million on technology and supply chain upgrades during its fiscal year 2014, which begins in February 2014. According to the Wall Street Journal, the results will include three new fulfillment centers in California, Atlanta, and Ohio by 2016, as well as same-day shipping for some online orders.
The new centers will dramatically increase the number of orders the chain can ship the same day they are received, which significantly expands the number of orders it will be able to deliver within two days or less. With this same day shipping capability, these centers are geographically positioned to leverage parcel freight carriers’ networks to deliver 90% of customers’ parcel orders within two days, using economical ground service. For example, when the network is complete, most customers will be able to order on a Wednesday by 5 p.m. with the product delivered by Friday, according to Home Depot.
Home Depot’s total sales are expected to reach $79 billion during fiscal 2013, aided by a boost is online sales. Other new programs for the upcoming fiscal year may include expanded in-home assembly and installation services.
Men’s Wearhouse focuses on positives in third quarter
Men’s Wearhouse reported declining net income during the third quarter of fiscal 2013 even as net sales improved.
Net income dropped about 22%, from $48.8 million in the third quarter of the prior fiscal year to $38.2 million.
Sales grew almost 3% to $648.9 million from $631 million. Same-store sales increased 2.6%. Men’s Wearhouse said financial performance was in line with company expectations and was hampered by a decrease in tuxedo margin due to lower rental revenue and higher per unit rental costs and royalty payments and the deleveraging of occupancy costs.
"We are very pleased to report our 2.6% same-store sales increase during the third quarter in our Men’s Wearhouse brand, which represents two-thirds of our consolidated sales,” said president and CEO Doug Ewert. “We are also very pleased with the early progress in integrating our newly acquired American designer brand, Joseph Abboud, and its U.S. manufacturing operations. We already have several large markets with Joseph Abboud product in place and will continue to execute on our planned rollout to all stores into the summer of 2014."
Mall operators Simon, Macerich, and Westfield launch same-day delivery with Deliv
Palo Alto, Calif. — Deliv, the same-day delivery company, announced alliances with three of America’s largest mall operators, Simon Property Group, Macerich, and Westfield, to provide the convenience of same-day service to shoppers in malls across the U.S. starting this holiday season. This follows a similar same-day delivery partnership announcement from General Growth Properties (GGP).
Collectively, the four mall operators manage over 660 malls including thousands of retailers across the country. Each of the mall owners are leveraging Deliv’s solution and building out the critical layer of infrastructure including providing runners, concierge services, safe item storage, shipping consolidation locations and dedicated parking for crowdsourced delivery vehicles.
Deliv’s model for same-day delivery uses crowdsourced delivery personnel and an intelligent technology platform to provide premium quality, same-day delivery at affordable prices. Managing a community of these on-demand drivers across the country, the Deliv platform incorporates smart routing and full transparency, including the ability for shoppers to watch their delivery on a map real time from pickup to their doorstep.
“Same-day delivery is a new and developing trend in physical retail. The mall will be a critical element in this service, providing a consolidated point of distribution for same-day delivery and supporting broader omni-channel marketplace trends,” said Mikael Thygesen, chief marketing officer of Simon Property Group. “Deliv’s crowdsourced approach is a unique solution, delivering flexibility, service and convenience for us, our retailers and our shoppers.”
Shoppers are becoming more tech-savvy and reliant on technology to provide on-demand services to enhance their shopping experience. This infrastructure enables all retailers in a mall to offer cost effective and flexible same-day delivery to their shoppers, making use of the scale provided by multiple tenants working together in a single delivery system.
The four mall operators, which serve two billion shoppers a year, are commencing rollout of Deliv-powered services across nine malls including GGP’s Stonestown Galleria (San Francisco), Eastridge (San Jose), Glendale Galleria (Los Angeles), and Oakbrook Center (Chicago); Macerich’s Santa Monica Place (Santa Monica) and Westside Pavilion (Los Angeles); Simon’s Stanford Shopping Center (Palo Alto); and Westfield’s Century City (Los Angeles) and Valley Fair (Santa Clara).
Each operator has customized its offering, culminating in the ability to have purchased goods delivered to a shopper’s home or other chosen destination within each mall’s defined delivery area.
"There is a huge opportunity to empower the retail ecosystem through converging new digital technologies into physical environments that make products and services available to shoppers, anytime and anywhere at our shopping centers," said Kevin McKenzie, global chief digital officer of Westfield. “Our Westfield Labs team is focused on piloting emerging technologies and services, like Deliv, that will help enhance and personalize the overall retailer and shopper experience. Westfield has the opportunity to extend new technologies to its 20,000 plus retailers globally and to benefit the 1.1 billion customer visits to our U.S. and international locations each year."