Walmart is kicking off its new delivery business with an impressive first client.
The Home Depot is the first retailer to sign on with Walmart’s white-label GoLocal delivery service. The home improvement giant will offer same-day and next-day delivery via GoLocal in select markets in the coming weeks, with plans to expand to multiple markets across the country by the end of the year. The service will be limited to items that easily fit in a car such as fasteners, paint and small tools. Products that qualify have a WalMart GoLocal option offered at online checkout.
With the launch of GoLocal delivery, Walmart is taking on the likes of Instacart and DoorDash. The discount giant is building the new service on the existing infrastructure supporting the Express Delivery same-day delivery service it rolled out in 2020. This includes drones, autonomous vehicles and market fulfillment centers.
The Home Depot is building a comprehensive, innovative delivery network to provide customers with same-day or next-day delivery options for any product, including big and bulky shipments of lumber, drywall or appliances. In 2020, the company opened its first-ever flatbed distribution center (FDC), an 800,000-sq.-ft. facility in Dallas. It plans to eventually build 40 flatbed distribution centers in the 40 largest markets, so it can bring bulk orders of construction and building materials to customers on a same-day, next-day basis.
In fiscal 2020, The Home Depot saw sales on digital platforms increase 86%, with more than half of online orders fulfilled through stores. The company moved 1.2 billion cubic feet of products through its delivery network and achieved record sales of $132.1 billion.
“The Home Depot is continuously working to give customers the most convenient shopping experience in home improvement, and that includes providing a wide range of fast and reliable delivery options,” said Stephanie Smith, senior VP of supply chain for The Home Depot. “This partnership brings us even closer to our goal of offering same-day or next-day delivery to 90% of the U.S. population.”
Walmart’s white-label GoLocal delivery-as-a-service offering includes nationwide delivery capabilities on a range of products, including those with size and complex requirements, as well as the flexibility to meet varying timelines. Walmart said it plans to rapidly expand GoLocal to offer additional services.
“We’re honored to work with The Home Depot in our shared goal of making fast and reliable local delivery available in every community we serve, including rural and suburban areas, where we both have a strong retail presence,” said John Furner, president and CEO, Walmart U.S. “We’re excited to welcome The Home Depot as Walmart GoLocal’s first retail client and look forward to helping power their local delivery efforts.”
At the end of the second quarter of fiscal 2021, The Home Depot operated a total of 2,298 stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.
Walmart operates approximately 10,500 stores and clubs under 48 banners in 24 countries and e-commerce websites.