Costco Wholesale Corp. completed the acquisition of Innovel Solutions, a provider of third-party end-to-end logistics solutions with nationwide capabilities. Innovel was a subsidiary of Transform Holdco, LLC, which operates Sears and Kmart stores.
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. Innovel’s network offers coverage to nearly 90% of the United States 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.
It employs over 1,500 people and operates 11 distribution/fulfillment centers and over 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. We believe the acquisition will allow us to grow our e-commerce sales of ‘big and bulky’ items at a faster rate,” says Craig Jelinek, Costco’s chief executive officer.
Under Costco’s ownership, Innovel will continue to serve Sears and other existing third-party customers.