Home Depot Signs Up for Walmart's GoLocal Delivery Service

Kimberly Redmond  |

Video source: YouTube, CNBC Television

The Home Depot Inc (NYSE:  HD) is teaming up with Walmart Inc (NYSE:  WMT) to provide same-day and next-day deliveries of tools, paint and other online purchases to customers’ doorsteps. 

On Wednesday, the two retailers announced that The Home Depot will be the first to sign up for Walmart’s new white-label delivery service, GoLocal, which enables other merchants to tap into the retail giant’s vast delivery platform to fulfill orders.

The Home Depot and Walmart, which are two of the nation’s largest retail chains, did not share the terms of their newly-formed partnership or the length of the agreement.

Launched in late August, the B2B last-mile delivery service is part of Walmart’s strategy to grow beyond its main retail business and build new revenue streams. The venture is also another way for Walmart to compete with rival Amazon.com, which has largely brought its delivery network in-house and promised same-day or next-day delivery in many markets.

Under the arrangement, Walmart’s GoLocal utilizes independent contract drivers on its in-house Spark delivery platform to pick up items from merchants’ stores. 

According to CNBC, GoLocal drivers will begin taking deliveries at select locations in New Mexico, Texas and Arkansas in coming weeks and then expand to other markets across the US by the end of the year.  

Products that qualify for scheduled delivery should "easily fit in a car" and will have that option enabled at online checkout, the companies said. 

For larger projects, Home Depot said it is “building a comprehensive, innovative delivery network to provide customers with same-day or next-day delivery options no matter the product or project.”

In a statement, Stephanie Smith, the company's senior vice president of supply chain, said, “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.”

“This partnership brings us even closer to our goal of offering same day or next day delivery to 90 percent of the U.S. population,” Smith said.

Walmart’s chief executive officer and president John Furner said, “We’re honored to work with The Home Depot in our shared goal of making fast and reliable local delivery available in every community we serve, including rural and suburban areas, where we both have a strong retail presence."

"We’re excited to welcome The Home Depot as Walmart GoLocal’s first retail client and look forward to helping power their local delivery efforts.”

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