Dive Brief:
- The Home Depot is exploring the construction of a distribution center providing same-day and next-day delivery of bulky goods in Yaphank, New York, per an application filed with the Brookhaven Industrial Development Agency last month.
- The cost of the 414,000-square-foot building's construction would be $157 million, with Home Depot making additional improvements totaling $11 million, according to the application. The facility on Long Island is expected to generate 200 full-time jobs, be it with the retailer or third-party logistics providers.
- Home Depot is requesting a sales tax exemption from the Brookhaven IDA to prepare and equip the proposed facility, Kevin Reddick, Home Depot's senior director of tax counsel, said in an application request. The application is pending approval, Lisa Mulligan, CEO of the Brookhaven Industrial Development Agency, told Supply Chain Dive in an email.
Dive Insight:
The potential New York location is part of a wider Home Depot supply chain investment strategy, as the retailer looks to establish "state-of-the-art distribution facilities throughout the U.S." to improve efficiencies, according to Reddick.
Over the past several years, the home improvement retailer has built an expansive network of distribution centers to accelerate its delivery speeds while freeing up space in stores. Home Depot utilized 104.7 million square feet in distribution facilities, fulfillment centers and warehouses at the end of fiscal year 2025, up from 55 million in fiscal year 2017.
The proposed site in Yaphank would ship big and bulky materials via light rail and flatbed truck transportation. Those materials may include lumber, building materials and flooring, Reddick said.
"[R]esidents and local construction companies in the region will benefit from an enhanced delivery service of the tools and materials needed on a same-day or next-day basis, where and when needed," Reddick said.
The value of the sales tax exemption Home Depot is seeking would be about $481,250, as $5.5 million of its proposed $11 million investment would be subject to an 8.75% sales tax, per Reddick. Home Depot is weighing the availability of incentives into its site selection decision, according to the application.
