Is Home Depot’s deal with Walmart a sign of bigger things to come?
Home Depot is hiring Walmart to handle local deliveries for its stores.
The retailers revealed today that they are teaming up to give Home Depot’s customers another way to have their online orders delivered on the same or next day. The two companies did not specify details, such as the length of the agreement or their financial arrangement.
The development marks the first publicly announced retailer deal for Walmart’s GoLocal delivery service, which debuted in August. The white label service, which uses third-party drivers, delivers orders for other businesses across the country. Walmart had said that it signed deals with both national and smaller accounts when it launched GoLocal but did not specify any companies at that time.
Home Depot will begin offering the GoLocal service in select markets in the following weeks with plans to expand its use by the end of the year.
Stephanie Smith, senior vice president of supply chain for Home Depot, said her company “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.”
“This partnership brings us even closer to our goal of offering same-day or next-day delivery to 90 percent of the U.S. population,” she said.
A recent Bloomberg opinion piece suggested that a Walmart and Home Depot merger would make sense since the two companies represent the first and third biggest importers of goods through container ships. Their combined strength would give them the ability to lay claim to containers at a time when many retailers are struggling to get goods into the country.
Home Depot has seen its online sales rise dramatically since the start of the novel coronavirus pandemic. The chain posted an 86 percent increase in digital sales last year and more than half of its orders were fulfilled by its stores.
The home improvement retailer is building a delivery network relying on third-parties to offer fast fulfillment to professional and do-it-yourself customers for jobs big and small.
John Furner, president and CEO, Walmart U.S said, Home Depot shares his company’s goal of “making fast and reliable local delivery available in every community” it serves.
- The Home Depot Teams Up With Walmart GoLocal To Enhance Local Delivery Capabilities – Walmart
- Do new Shipt and Walmart programs signal big changes to come in the retail delivery market? – RetailWire
- A Walmart-Home Depot Merger Makes Shiploads of Sense – Bloomberg/The Washington Post
DISCUSSION QUESTIONS: What does the Walmart/Home Depot GoLocal deal mean for each company? Do you see a deeper relationship for the two companies, perhaps even a merger, in the future?