Home Depot’s Interconnected Retail Strategy is Helping Sales Surge
In this Digital Business Spotlight, we look at Home Depot’s winning omnichannel retail strategy, and how it’s placing the brick-and-mortar store in the customer’s pocket.
It’s May 2020, and the country is in the middle of an unprecedented COVID-19 pandemic. Retail stores are mostly shut down across the globe. But one piece of good business news is that digital commerce is surging at the Home Depot Inc. According to Digital Commerce 360, Home Depot’s sales grew 21.4% in fiscal 2019, and is continuing to surge in 2020. CEO and president Craig Menear attributes much of that to the retailer’s omnichannel efforts—or what he calls Home Depot’s interconnected retail strategy. 50% of online orders are picked up at a Home Depot store, Menear said in an earnings call, according to a transcript from Home Depot.
“We believe that the front door of our store is now in the customer’s pocket,” Menear said, referring to mobile commerce. “It’s on the job site that most of our customers’ shopping experience actually starts in the digital world, even if it finishes in the physical world.”
The company has invested in its digital business over the years and continues to do so. “HomeDepot.com continues to be a growth engine for our overall business, driving increased traffic online and additional footsteps to our stores,” Menear said in the earnings call. “Because of this, we continue to invest in search functionality, category presentation, product content and enhanced fulfillment options to remove friction from the online shopping experience.”
And it’s not just for their home consumers. According to Menear, Home Depot also recognizes the importance of eCommerce in B2B. To better meet the needs of its big-spending pro or business customers, such as contractors, Home Depot invested in a B2B portal during the quarter. The retailer says it now has more than 1 million pro customers. Also, during the quarter, it completed the integration of an internal customer relationship management system for all it’s pro sales and services teams.
“This enhances our visibility, enabling us to better serve our customers,” Menear said. “I am excited about the opportunities ahead as we continue to build capabilities to engage with the Pro, no matter when, where, or how they want to interact.”
Home Depot is one example of many companies that have embraced digital business transformation and have adapted to the changing world.