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Home Depot (HD) Teams With Instacart to Offer Same-Day Delivery

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The Home Depot, Inc. (HD - Free Report) has been making strategic moves to enrich the customer experience. The company has been experiencing benefits of the execution of the “One Home Depot” investment plan, which focuses on expanding supply-chain facilities, technology investments and enhancing the digital experience.

In the latest developments, the company partnered with Instacart, a renowned grocery technology company in North America, to provide same-day delivery from its 2000 stores. Consumers can now order from a broader range of home-improvement items on Instacart's platform, ranging from garden and building supplies to light fixtures. These items will be delivered directly and quickly to customers’ doorstep.

This alliance expands selection beyond grocery apart from enhancing the e-commerce capabilities. The partnership also eases access to necessary home-improvement products, thereby offering household appliances ranging from microwaves and vacuums to cleaning supplies or gardening tools.

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Via the existing same-day and next-day delivery options on with Instacart's expedited facilities, this collaboration is boosting flexibility for customers. This partnership, which has been rolled out nationwide, encompasses Instacart's Big & Bulky fulfillment solution offering same-day and scheduled deliveries for huge items up to 60 pounds, including grills, ladders, large boxes and others.

What’s More?

Home Depot remains focused on expanding its business and is positioned to capture market share. Management noted that it witnessed improved customer engagement in the home improvement projects, particularly for small projects. Going forward, the company remains focused on navigating the unique and uncertain environment by operating with agility amid evolving consumer trends. It also expects to drive productivity and efficiency throughout the business.

Additionally, Home Depot’s Pro segment has been a key growth driver, with the segment witnessing robust sales growth for the last several quarters. The company is on track with its strategic investments to build a Pro ecosystem that includes professional-grade products, exclusive brands, enhanced delivery, credit, digital capabilities, field sales support, HD rental and more. It continues to invest in Pro capabilities like enhanced fulfillment, more personalized online experience, as well as other business management tools to drive deeper engagement with Pro customers.

Buoyed by such strengths, shares of this home-improvement retailer have gained 17.1% compared with the industry’s 15.2% growth in a year. The company currently carries a Zacks Rank #3 (Hold).

Key Picks

We have highlighted three better-ranked stocks, namely Gap (GPS - Free Report) , American Eagle (AEO - Free Report) and Deckers (DECK - Free Report) .

Gap, a leading apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). GPS delivered an earnings surprise of 180.9% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Gap’s financial-year sales suggests growth of 1.7% from the year-ago reported figure.

American Eagle, a leading casual apparel retailer, currently carries a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 22% in the last reported quarter.

The consensus estimate for American Eagle’s current financial-year sales suggests growth of 3.4% from the year-ago reported figure.

Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an earnings surprise of 32.1% in the trailing four quarters.

The Zacks Consensus Estimate for Deckers’ current financial-year sales suggests growth of 15.8% from the year-ago reported figure.

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