For the nine months ended October 2016, The Home Depot reported a more than 7% increase in revenue to an estimated $90 billion annually. The company achieved this without opening a new US big-box store in the past three years. The Home Depot’s focus on online retailing has played a major role in driving this growth—specifically, online retailing of ‘eCommerce unfriendly’ products.
Our economic engine used to be driven by new square footage.
Instead of generating revenues from new square footage, The Home Depot has increased revenue from existing stores by more closely integrating the online and in-store experience.
The company has specifically focused on products that are ‘eCommerce unfriendly’; products that require advice from experienced associates in-store. Customers can visit stores for a demo or advice and then buy online later. For orders placed online, customer can pick up in-store and seek advice at the time of pick up.
By integrating the online and store experiences, The Home Depot provides the ease of online shopping and the benefit of personal interaction, product demos and advice.
Over 40% of online orders are picked up in-store. The company’s online sales formed 5.6% of its revenues in Q3 2016 – a significant increase from the 1% number in 2011.
