Walmart is expanding its GoLocal delivery service with a major new partner: The Home Depot. Shoppers in select markets will be able to schedule same-day and next-day delivery for supplies that can easily fit in a car, including tools, fasteners and paint, with coverage expanding to multiple markets nationwide by the end of 2021.
The Home Depot has been expanding its last mile capabilities in response to an 86% surge in digital sales in fiscal 2020. More than half of these orders were fulfilled through stores, making them valuable staging points for the last mile. The Home Depot’s other recent efforts include investing in Roadie and opening three distribution centers in Georgia.
“The Home Depot 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,” said Stephanie Smith, SVP of Supply Chain for The Home Depot in a statement. “This partnership brings us even closer to our goal of offering same-day or next-day delivery to 90% of the U.S. population.”
Walmart launched GoLocal in August 2021, but delivery isn’t the first retailer-to-retailer service offered by the giant. Walmart also provides fulfillment services for its marketplace sellers, media support for its brand partners and access to its cloud technology through the Adobe Commerce platform.
These offerings all compete with the entire ecosystem of services Amazon offers to retailers, including Fulfilled By Amazon, Amazon Ads, AWS and even its cashierless store technology. The retail giant stresses its deep first-hand retail experience to stand out from traditional solution providers.
“We work backwards from the business challenge you’re trying to solve,” said Tom Litchford, Head of Worldwide, Retail at AWS in an interview with Retail TouchPoints. “We solve it, and then we release that technology to all of our customers, as long as the customer we did it for allows us to do that.”
Other retailers also offer their own capabilities to Amazon, largely to make up for its relatively small physical footprint. Rite Aid, GNC and other retailers let shoppers pick up Amazon orders at their stores, and Kohl’s accepts Amazon returns. These retailers benefit from additional traffic while Amazon adds fulfillment flexibility for its customers.
Amazon and Walmart may have the largest selection of retailer-to-retailer services, but they aren’t the only companies doing so. For instance, Tesco’s dunnhumby has offered its data services to retailers for years, including to other supermarkets like Whole Foods.