It's been a pretty difficult past couple of years for most retailers.
Unless, of course, you're Amazon (AMZN) or Home Depot (HD) .
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Both retailers not only remained relatively unscathed during the pandemic – as others faded away into store closures, reduced foot traffic, declining interest, insolvency, or even bankruptcy.
They actually thrived.
Part of this success is because both companies were set up to win before Covid even hit. Both were run by a competent management team, weren't stretched too thin, and focused on responsible growth without thinning out margins.
But a large reason both Amazon and Home Depot succeeded during the pandemic is because they served a crucial need that customers had.
In Amazon's case, this was convenience. As many of us sheltered in our homes and spent a lot more time thinking about how to occupy ourselves, Amazon was there to comfort us. Fast and free shipping, plus access to millions of SKUs – like everything from books to shows to embroidery kits – were there to take the edge of boredom off.
And Home Depot was there when we were ready to take on more ambitious projects, when we finally tired of those adult coloring books or making sourdough bread from scratch.
Thanks to a shortage of labor and a gummed-up supply chain, hiring professional contractors was harder to come by. So many Americans tried their hand at doing projects themselves.
Home Depot's success is no accident
Since many of us had a little extra time on our hands over the past few years, we'd probably noticed some of those home projects we'd been putting off. And with a little extra help from the stimulus checks that went out to millions of Americans, many of us had some extra cash to finally spend on these projects.
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Maybe they started as minor projects, like adding a fresh coat of paint to the powder room or changing out the hardware on the kitchen cabinets. But many folks have since gone deeper into the DIY space, replacing flooring, adding new decks to their outdoor spaces, or doing an entire kitchen remodel.
Home Depot has achieved considerable growth over the past several years because it caters to all of those customers. While it's always been there for weekend warrior types who just want to tinker at home, it's also growing a robust professional service, adding several new facilities aimed specifically at professionals who handle larger projects day to day.
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The distribution centers are large facilities that stock materials like lumber, insulation, roofing shingles, and other supplies available in industrial amounts with the ease of access and pickup that Home Depot is already known for.
Delivery directly to job sites will also be available for convenience and to handle bulkier items that may not ordinarily fit in a pickup.
Home Depot makes a customer-friendly move
And while it's been focusing a great deal on its expanding contractor market, Home Depot isn't forgetting about the smaller guys.
The home improvement retailer announced that it would be expanding its at-home delivery service for projects big and small. It's partnering with food and supplies delivery service Instacart to help fulfill the mission, which it says is intended to assist in a smoother home improvement process, particularly if customers need help with the delivery of bulkier items.
The service will be available for same- and next-day delivery, and includes Instacart's Big and Bulky option, which assists with fulfillment of items up to 60 pounds. Delivery can be made in as little as one hour, depending on location and size.
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"Expanding our e-commerce capabilities is a key part of our ongoing efforts to deliver a seamless interconnected experience," said Jordan Broggi, Home Depot online president.
Customers can place orders on Home Depot's website, or directly through Instacart. Some featured items include gardening tools, lighting, household appliances, grilling and outdoor equipment, and paints.
And this partnership is a part of a larger strategy that has been a long time coming. In 2019, Home Depot announced it would invest $1.2 billion into its supply chain capabilities so it could someday fulfill orders on the same day they were placed. Now, Home Depot says customers have access to such expedience from approximately 2,000 locations around the United States.
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