Through the use of the vast network of stores that both Home Depot Inc. (NYSE:HD), as well as Wal-Mart Stores Inc. (NYSE:WMT), have, both companies are striving to contend with Amazon.com, Inc. (NASDAQ:AMZN) online revenue.
Ravi Jariwala, spokesman for Walmart stated that Walmart makes use of 80 out of the 4,500 stores available across the U.S in order to pack and ship online orders.
Furthermore, it was revealed that Walmart has five large distribution centers which have a primary dedication to online orders. As well as throughout the country approximately 100 smaller e-commerce facilities.
Home Depot is following Walmart’s example with regards to increasing the percentage total of stores that assist in shipping online products to their customers. It was reported that an approximate 42% of the total online orders are picked up from their stores.
In order to increase this number, Home Depot CEO, Craig Menear stated that they are rolling out a new consumer transaction system referred to as “BODFS” or rather “Buy Online And Deliver From Store”.
Through the use of this system. Consumers are able to place their order and experience a highly diminished waiting period for their order as they will be able to have their purchases delivered to their local Home Depot store.
This rollout has currently been inducted into 700 of the available 2,200 stores across the country. Menear stated that the vision is all 2,200 stores will have this system in place by the end of the year.
Home Depot and Walmart’s numbers and strategic implementations seem to be impressive. However, they still have a way to go before they will be able to state that they have caught up to Amazon. Currently, Amazon boasts 180 fulfillment centers dedicated primarily to online purchase and deliveries.
The online sales revenue in competition as of 2015 was sitting at $13.7 billion for Walmart, approximately 5.6% of $26.5 billion from Home Depot’s second quarter sales as well as Amazons leading $107 billion.
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