The Home Depot has acquired Massachusetts-based automation and technology systems business SIMPL Automation, as the US home improvement retailer moves to increase automation across its supply chain.
The financial terms of the deal were not disclosed.
In a press statement, the retailer said SIMPL applies engineering and AI technologies to help distribution sites run “faster and more efficiently”.
The Home Depot said the transaction aligns with its “same-day/next-day fulfilment” strategy and is intended to improve safety while increasing speed in distribution centres.
The purchase follows a pilot of SIMPL’s technology at The Home Depot’s distribution centre in Locust Grove, Georgia.
It also said SIMPL has a patented storage and retrieval system designed to raise storage density, which it said would allow the company to keep a wider range of high-demand products closer to customers.
The retailer described the acquisition as part of a broader push on supply chain innovation, covering AI-driven inventory management, automation, advanced analytics, mobile tools and live delivery tracking.
The Home Depot supply chain senior vice-president Amit Kalra said: “We are focused on providing the best interconnected experience in home improvement by having products in stock and ready to deliver to our customers, whether it's to the home or job site.
“By bringing SIMPL’s industry-leading automation into our operations, we are accelerating the flow of products through our distribution network to deliver with unprecedented speed and precision.”
Last month, The Home Depot set out plans to open 12 new stores across eight states this year, adding more than 1.6 million square feet of retail space in the US.
The company said the new sites would also support fulfilment, noting that more than half of its online orders are already handled through physical stores.
In its latest financial update, The Home Depot reported net sales of $38.2bn, down 3.8% year-on-year while net earnings fell to $2.57bn from $3bn in the same quarter a year earlier.
