Home Depot Invests in Lockers
The orange-colored lockers are currently available at select stores — including the Randhurst store in Mount Prospect, IL — and offer three varying compartment sizes that can hold more than 60% of the retailer's “Buy Online, Pickup In Store” orders, a Home Depot spokesperson told the Institute. If an item does not fit within a locker, shoppers are notified to pick their order up at the Customer Service desk. Orders will be available in lockers for up to seven days.
The retailer began rolling out the lockers in late 2017 after testing them in stores during 2016. Since lockers are popping up rapidly, the exact number of stores with lockers to date is unclear. However, about 1,000 stores will have lockers by the end of the year and the retailer plans to complete an all-store installation over the next few years, according to the spokesperson.
"Currently, [approximately] 45% of Home Depot’s online orders are picked up in store," the spokesperson told the Institute. "For that reason, the lockers allow us to simplify that process by providing customers with the convenience of self-service and time savings."
The lockers are part of the home improvement retailer's plan to roughly double its total investment spending in the next three years to some $11.1 billion. As part of the plan, the retailer will invest $5 billion in stores, $2.9 billion in its online business and IT platforms, and $800 million to create "one supply chain," Home Depot's senior vice president of finance Richard McPhail at the Raymond James 39th annual Institutional Investors Conference on March 6. The last is part of a $1.2 billion five-year supply chain investment program.
In stores, Home Depot also plans to improve navigation via enhanced signage, and is changing checkout registers so they can shift between traditional checkout with a cashier and automated self-checkout. Home Depot said its changes have decreased the amount of time it takes to pick up an online order by 17%.