THE Home Depot is looking to save around $500 million as sales have slowed since the pandemic boom.
But the changes will improve the availability of customers’ favorite products on the shelves.
The Home Depot is taking major cost-cutting measures, the home improvement store’s executive vice president and chief financial officer Richard McPhail said June 13 at an investor and analyst conference.
It comes after the nationwide retailer dramatically scaled up its stocking and delivery capabilities during a “rampant increase in transactions” in 2020 and 2021.
But expanding its capabilities so quickly was expensive for The Home Depot, which is now seeing transaction levels normalize at its 2,300 stores.
As a result, execs plan to reduce the supply chain holding capacity with the goal of achieving $500 million in savings next year.
But a spokesperson for The Home Depot told The US Sun that customers would only notice positive improvements in stores.
“We don’t expect an impact on customer service levels or product availability,” said the retailer.
“In fact, we have several tools that we’re implementing in our stores and supply chain facilities to improve on-shelf availability for our customers, which is already driving significant improvements.”
The Home Depot has already surpassed its goal of offering next-day delivery to 90 percent of the population.
And the store has stayed ahead of its competitors in the delivery of large appliances by keeping its operations in-house, which has led to improved customer satisfaction.
Although The Home Depot is pinching pennies, other retailers are splurging out massive sums of cash to improve the customer experience.
HEY, BIG SPENDER
Target is investing $5billion into five key areas of the shopping experience.
One such improvement is the nationwide rollout of drive-up returns, which has been a huge hit with customers.
Meanwhile, Target is renovating 175 stores and adding new shop-in-shop experiences with Ulta Beauty and Apple.
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We’ve rounded up more information here:
Nutrition giant GNC announced this week it will be testing out home delivery via drones.
Customers in Salt Lake City, Utah, may receive their next order of protein powder, snack bars, or supplements without any human involvement in the delivery.
GNC has partnered with Zipline, which uses a fleet of small, autonomous aircraft to drop packages onto properties via parachute.
Meanwhile, Walmart opened its first “Store of the Future” with new interactive displays, larger shopping lanes, and expanded choices.
And Foot Locker is making four big changes as part of its “Lace Up” strategy.