In 2017, The Home Depot began a major distribution network expansion.
The Home Depot will open three new distribution centers in its home state of Georgia over the next 18 months as it continues to elevate its digital supply chain capabilities.
The warehouses will support what the retail chain called the growing demand for flexible delivery and pickup options for pro and DIY customers. The new facilities will become part of the chain's network of at least 200 distribution centers in the United States, Canada and Mexico.
(Interested in supply chain and the future of microfulfillment centers? Join Retail Leader and industry experts to explore what's next on Aug. 27.)
"Retail has changed more in the past four years than in our company's 40-year history. Customers expect to shop whenever, wherever and however they want – whether they're buying a hammer or a pallet of pavers," said Stephanie Smith, SVP of supply chain development and delivery for the Atlanta-based chain. "We're investing to meet the changing delivery needs of our DIY and pro customers, whether they're at home, at their job sites or picking up in the store."
The three new distribution centers, planned for the Atlanta area, include:
A 657,600-square-foot distribution center in Locust Grove that will focus on fast replenishment to stores in the Southeast, and will be the largest of the three. Planned to open within the next few months, the warehouse will employ about 600 people.
A new "flatbed delivery center" set to open in Stonecrest in 2021 will offer same-day and next-day delivery of bulk and oversized orders to both pro and DIY customers. These new delivery services further The Home Depot's capabilities to serve pro customers by delivering large, oversized orders and materials directly to a pro's job site, when and where needed. Earlier this year, the company opened its first flatbed delivery center, in Dallas, to increase the accessibility and reliability of deliveries in that market.
An order-fulfillment operation in East Pointin is set to open late 2021. This facility will offer same-day and next-day delivery of the most popular products primarily ordered by institutional-business customers for their maintenance, repair and operations needs.
About three years ago, The Home Depot said that it would invest $1.2 billion in distribution center expansion, an effort designed to include about 150 new supply-chain facilities nationwide. The retailer wants to expand its same-day and next-day delivery options to 90% of the U.S. population. These facilities include a variety of formats to meet the needs of customers, from small parcel packages to big and bulky products. In addition to warehouses, The Home Depot uses its almost 2,000 U.S. stores as a network of convenient customer pickup, return and delivery fulfillment locations.