Over the next 18 months, home-improvement retailer Lowe's plans to open 50 cross dock delivery terminals, seven bulk distribution centers, and four e-commerce fulfillment centers. The plan includes 20 cross dock terminals and one West Coast e-commerce fulfillment center in the second half of the 2020 fiscal year. The retailer's goal is provide more same-day and next-day service offerings across the United States and enable faster e-commerce shipping.
Lowe's will open its West Coast e-commerce fulfillment center in Mira Loma, Calif., in October. The company said the fulfillment center will improve two-day delivery options to reach nearly 100% of customers across the country. The Mira Loma facility is the retailer's second direct fulfillment center. Lowe's previously opened a direct fulfillment center in Nashville, Tenn., in 2018.
"Providing customers more ways to shop has never been more important, and today's update on the progress made in our supply chain transformation highlights our ongoing and unyielding commitment to enhancing the customer experience in this new era," Don Frieson, Lowe's executive vice president of supply chain, said in a news release. "Opening these new facilities will allow our stores to operate more efficiently through improved flow management and inventory visibility and improve the customer experience with more predictable deliveries, better in-stock rates and faster fulfillment options."
The newly announced plans build on efforts over the past 18 months to expand the company's supply chain capacity to improve home delivery and support growing demand from both professional and DIY customers. Over the past year and a half, Lowe's has opened more than 13 facilities in markets such as Chicago, Orlando, Riverside, Calif., and Columbus, Ohio. According to the retailer, the facilities allow the supply chain to "nimbly respond" to meet the various needs of customers from small packages to larger items, such as appliances, grills, and outdoor power equipment.
In 2018, Lowe's announced a $1.7 billion investment to expand its distribution network through 2023. The company and its third-party partners will create over 5,000 jobs to support this initial expansion.
