From Store to Site: How Home Depot Is Reinventing Fulfillment

Core Insights - Home Depot Inc. is transforming its fulfillment model into an interconnected ecosystem linking stores, digital platforms, and job sites, with stores as the central hubs [1][9] - The company is leveraging machine learning for efficient delivery routes, achieving record-breaking same-day and next-day delivery speeds, which is driving increased customer spending [2][9] - Home Depot is enhancing its workforce and technology to support demand, improving order accuracy and turnaround times, which boosts customer satisfaction [3][9] - The integration of SRS and the planned acquisition of GMS will expand Home Depot's distribution network, enhancing its reach into specialty trades and improving service speed [4][9] Competitive Landscape - Lowe's is modernizing its fulfillment model through the acquisition of Foundation Building Materials, aiming to enhance job site fulfillment and customer growth [5][6] - Floor & Decor is expanding its fulfillment capabilities by combining warehouse efficiency with customer-focused innovations, ensuring timely access to materials for renovation projects [5][7] Financial Performance - Home Depot's shares have decreased by 8.7% over the past year, outperforming the industry's decline of 12.8% [8] - The forward price-to-earnings ratio for Home Depot is 23.88X, higher than the industry average of 21.02X [10] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 1.5% for fiscal 2025, with an expected growth of 8.3% for fiscal 2026 [12]