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ISSAQUAH, Wash. — Costco Wholesale Corp. has acquired Innovel Solutions, a logistics firm specializing in last-mile delivery and installation services, for $1 billion.
The move is seen as helping Costco support online sales of such products as furniture, large appliances, fitness equipment and big-screen televisions.
Innovel has for decades provided Sears and, more recently, third parties with ‘final mile’ delivery, complete installation and white-glove capabilities for ‘big and bulky’ products across the United States and Puerto Rico,” Costco said. Innovel’s network offers coverage to nearly 90% of the U.S. and Puerto Rico. Products served through Innovel include major appliances, furniture, mattresses, televisions, grills, patio, fitness equipment and wine cellars. Innovel consistently ranks in the top quartile of customer satisfaction scores, according to Costco.
Innovel previously operated as a subsidiary of Transform Heldco LLC (TFCO), which operates Sears and Kmart stores. As part of the deal, Costco entered into a long-term agreement to provide TFCO warehousing, delivery and installation services to Sears and Kmart members.
Innovel employs over 1,500 people and operates 11 distribution/fulfillment centers and more than 100 final-mile cross-dock centers, with over 15 million square feet of warehouse space. The company also operates dedicated call centers.
Costco has been a customer of Innovel since 2015.
“We have had a great relationship with Innovel and share a philosophy of taking care of our members,” Costco CEO Craig Jelinek said in a statement. “We believe the acquisition will allow us to grow our e-commerce sales of “big and bulky” items at a faster rate.”
