The American building materials and garden supply chain has used online tools to great advantage.
The Home Depot’s strategy to become an interconnected multi-channel retailer allowed it to break records at a time of very limited growth in its category.
The building materials and garden supply retail sector in the US grew by 0.6 percent from 2018 to 2019.
During that same span of time, Home Depot managed to grow its revenues by 1.8 percent overall. In 2018, its revenues were $108.2 billion whereas that figure rose to $110.2 billion last year. This substantially higher growth rate than its sector was greatly credited to the company’s transition to become an interconnected multi-channel retailer.
The company’s fiscal 2019 net earnings were $11.2 billion – that is, $10.25 per diluted share. This success brought the company to approve a 10 percent increase in its quarterly dividends – that is, $1.50 per share. This was the eleventh year in a row that the company was able to increase the dividend.
The transition to an interconnected multi-channel retailer let the Home Depot break fiscal records.
“Fiscal 2019 was another record year for our business, as we achieved the highest sales in company history,” said Home Depot CEO Craig Menear. “While we define our sales growth in percentage terms, we capture share in dollar terms. We have grown sales by over $9 billion, a level of growth unmatched in our market.”
For several years, the company has been undergoing a transition to allow consumers and contractors to be able to shop in-person as well as online and on their phones. Moreover, the experiences are meant to be seamless in that one can move into the other without many barriers in the way. In fact, using the mobile experience while in-store can enhance the ease of shopping.
“We’re excited about our e-commerce business as part of a whole interconnected retail strategy,” said Menear. “We believe that the front door of our store is now in the customer’s pocket.” He stated that in the case of the majority of Home Depot customers, the shopping experience begins as a digital one, even if the final purchase is made in a brick-and-mortar store.
Though Home Depot doesn’t report its e-commerce or m-commerce sales separately, it boasts a number 5 position as market share leader in e-commerce sales. This clearly demonstrates the reach the company has managed to achieve as an interconnected multi-channel retailer.