The Home Depot Q4 2014 Investor Conference Call Notes

Fourth Quarter Results

• Sales $19.2 billion, up 8.3% from last year
• Comp sales were positive 7.9% for the full quarter.  U.S. store comps were positive 8.9%.
• U.S. stores positive comps 8.9%
• 9 departments had comps above the company average for the quarter.  They were: tools, lumber, millwork, lighting, décor, building materials, kitchen, bath, and hardware.  All other dept had positive comps in the mid-single digits.
• Millwork categories had double-digit comps in patio doors, windows, interior doors, and exterior doors.
• Maintenance and repair categories saw comps above the company average in products like water heaters, wiring devices, cleaning, conduit, and caulks.
• Décor products saw comps above the company average in vanities, bathroom fixtures, decorative holiday, interior lighting, and hard surface flooring.
• Transactions per ticket under $50, representing approximately 20% of U.S. sales, were up 3.1%.
• Transactions per ticket over $900, also 20% of U.S. sales, were up 10.3%.  Drivers behind big ticket purchases were appliances, water heaters, and installation categories like windows, roofing, and sheds.

Full year 2014 Results

• Comps for U.S. stores were positive 6.1%
• Online business grew over $1 billion, 36% growth rate.  Almost 40% of online orders were picked up in the store.
• Average ticket size grew 1.9%.
• Ended year with 2,269 stores

2015 Guidance

• Expect overall GDP growth and continued tailwind from the housing recovery will be the principle drivers of growth.
• Consensus 2015 GDP growth forecast calls for moderate growth, and most housing data points towards a continued moderate recovery in the U.S. housing market.
• Expect comp growth in the U.S. of approximately 4.5%.  GDP plus about 150 basis points.
• Mr. Menear commented “We’ve shared with you in the past that our number one priority is in stock.”
• Opening 6 stores in 2015, five in Mexico and one in Canada

CONSUMER SATISFACTION WITH RETAIL IS ON A DECLINE

The American Consumer Satisfaction Index (ACSI) reports that consumer satisfaction with retail is on the decline for the first time in four years.

The ACSI report states brick-and-mortar customer satisfaction fell flat or weakened, while Internet retail is up from last year. By category, overall satisfaction with department and discount stores stayed flat at 77, while the gap between best- and worst-ranked companies grew. Nordstrom was the top rated, gaining 4% to 86. They are followed by Dillard’s (81), Kohl’s (-1% to 80) and Macy’s (79). Walmart dropped 4% to 68 and is at the bottom of the category behind Target (+4% to 80), Meijer (78) and Sears (-5% to 73).

Among home improvement chains, Lowe’s rated best at 81, while Home Depot falls to the category’s bottom dropping 4% to 76.

Amazon remains at the top of the Internet sector, at 86. Netflix improved for the third straight year gaining 3% to 81. Overstock and eBay both dropped to 77 and 79, respectively.

The ACSI is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the US. The ACSI uses data from 70,000 customers annually for measuring satisfaction with more than 230 companies in 47 industries.

Resource: Retailing Today

RETIRED HOME DEPOT CEO AND CHAIRMAN JOINS P&G BOARD OF DIRECTORS

Francis Blake, 65, joins the Proctor & Gamble Co. board of directors, effective immediately. This announcement comes just a few days after his retirement as chairman of Home Depot. He stepped down from the CEO position in November.

Blake’s extensive retail experience joins Macy’s Inc. CEO Terry Lundgren on the board.

Prior to Home Depot, Blake was general counsel for the US Environmental Protection Agency and deputy counsel to Vice President George H.W. Bush.

"Frank is one of the most respected business leaders in America today. His vision, strategy and focus on execution led Home Depot to strong and sustained business growth," said P&G CEO A.G. Lafley said. "We will deeply benefit from his management expertise and retail experience."

Blake also serves on the board of directors of Delta Airlines and the Georgia Aquarium.

Resource: Retailing Today

US Consumer Survey Unveils 2014 Favorite Retailers

PwC’s annual global consumer survey of about 1,000 US respondents list Amazon as most favorite retailer with 52% of the vote. Amazon was followed by Walmart with 41% and Target 29%.

These retailers were followed by several department stores. Kohl’s was rated the highest of the department stores with 14% of the vote. Other department stores in the top 10 included Macy’s and J.C. Penny.

Home Depot came in 10^th and was the only DIY retailer to make the list.

The top reason cited by consumers were “Their prices are good”, followed by retailers having the items shoppers want in stock.

The US pattern mirrors the global pattern in another PwC survey.

The survey also captured whether consumers are “showrooming”, or browsing at physical stores but then shopping online. 68% of respondents said they have done so. However, 73% of consumers do the opposite, or “webrooming”, browsing online and buying in stores. Their reasons included delivery fees, being able to touch the merchandise, and getting the merchandise immediately.

PwC: Price Waterhouse Coopers

Resource: MarketWatch

Home Depot Extends E-Commerce Capabilities Westward

October 2, 2014

Home Depot is extending its e-commerce capabilities westward with the opening of a dedicated online fulfillment center in California.

Located in Perris, California, the 858,953 sq. ft. facility will initially employ approximately 150 people, and eventually employ up to 300.  It is one of three new DFCs opening across the U.S. in addition to the company's existing network.

The Locust Grove DFC opened outside of Atlanta, Georgia in February and the Ohio DFC is scheduled to open next year.

According to the company, the new DFCs will dramatically increase the number of orders it can ship the same day they are received, which significantly expands the number of orders they'll be able to deliver within two days.

The three new DFCs are strategically positioned to deliver 90% of Home Depot's customers' parcel orders within two days using economical ground service.  For example, a customer will be able to place an order by 5 p.m. Monday and receive on Wednesday.

The company added that the new DFCs will also lower transportation costs and allow it to deliver online orders to consumers, contractors and its network of U.S. stores faster and uniformly.

Each center will have the capability to hold as many as 100,000 skus and stock a variety of goods including:

1. Products customers most frequently want delivered

2. Products where an extended assortment will be enabled through direct fulfillment (e.g. lighting and fans)

3. Products where a direct fulfillment strategy provides a better customer solution (e.g. flooring)

4. Seasonal products where a central fulfillment strategy allows the specialty retailer to offer a more compelling assortment (e.g. patio furniture)

The Home Depot has more than 90 North American distribution facilities, which ship products to more than 2,000 stores.

Source: Retailing Today

Home Depot Updates Guidance

September 19, 2014

Investors don't seem to care that Home Depot's data breach is being characterized as the largest ever in the retail sector with shares of the company hitting a new high on Friday.

Home Depot shares touched a 52-week high of $93.75 on Friday, a day after the company disclosed details about an extensive data breach which went undetected for months and compromised the information of 56 million customers.

The company confirmed that the malware used in its recent breach has been eliminated from its U.S. and Canadian networks and provided new details about the completion of a major payment security project designed to increase data security.  The project provides enhanced encryption of payment data at the point of sale in the company's U.S. stores, offering significant new protection for customers, the company said.  Roll-out of enhanced encryption to Canadian stores will be complete by early 2015.  Canadian stores are already enabled with EMV or "Chip and PIN" technology.

Despite the expense of the IT investigation and remediation efforts, the strength of Home Depot's business during the period when hackers were stealing customers' data enabled it to increase its full year profit forecast by two cents to $4.54.  While the updated guidance includes various expenses already incurred, it does not reflect potentially substantial accruals for future losses the company said are probably but cannot be quantified at this time.

Source: Retailing Today

The Home Depot Appoints New CEO

August 21, 2014

The Home Depot has named Craig Menear, currently president, U.S. retail, as CEO and president, effective November 1, and has elected him to the company's board of directors, effective immediately.  Current chairman and CEO Frank Blake will remain chairman.

Menear, who was named president, U.S. retail in February of this year, is a 34-year-retail veteran and a key leader in the company's success.  In addition to his role as chief merchant, Menear has overseen the company's supply chain efforts, its rapidly growing online and private brand businesses and the company's marketing and global sourcing.

Prior to joining the company in 1997, Menear held various merchandising positions within the retail industry with companies such as Ikea, Builders Emporium, Grace Home Centers and Montgomery Ward, as well as operating an independent retail business.  He earned a bachelor of arts degree from Michigan State University's Eli Broad College of Business.

"Craig has taken on increasing leadership responsibility over the last several years and has excelled in all his roles," said Blake.  "As a long-time Home Depot veteran, Craig lives our values and embodies our culture.  He'll do an outstanding job leading our company in the years ahead."

Blake has been chairman and CEO of The Home Depot since 2007.

"On behalf of the board, I want to thank Frank for the job he has done over the last seven years," said Greg Brenneman, the board's lead director.  "Among his many accomplishments, Frank had built a world-class leadership team.  We are fortunate to have a leader of Craig's capabilities as our new CEO."

In fiscal 2013, the company had sales of $78.8 billion and earnings of $5.4 billion.

Source: Retailing Today

Customers Flock To Home Depot In 2Q

August 19, 2014

A 6.4% second quarter same store sales increase at U.S. stores enabled Home Depot to handily exceed analysts' profit estimates and prompted the company to increase its full year outlook.

The nation's largest home improvement retailer said its sales for the quarter ended August 3 increased 5.7% to $23.8 billion and net income grew 14.2% to $2.1 billion from slightly less than $1.8 billion the prior year.  Earnings per share increased 22.6% to $1.52, seven cents better than analysts forecast, from $1.24 the prior year.  Home Depot's profit performance was aided during the quarter by aggressive share repurchase activity which reduced the number of outstanding shares by 6.2%.  The company spent $3.5 billion during the first six months of the year buying its own shares.

"In the second quarter, our spring seasonal business rebounded, and we saw strong performance in the core of the store and across all of our geographies," said Frank Blake, Home Depot's chairman and CEO.

The company's overall same store sales growth, including locations in Canada and Mexico was 5.8%.  The growth was driven by a 4.2% increase in the number of transactions and a 1.8% increase in average transaction size which was $58.43 in the second quarter of 2014 compared to $57.39 in the second quarter the prior year.

Based on the strong second quarter performance, Home Depot confirmed its forecast for 2014 sales growth of 4.8% and increased its earnings per share target to $4.52.  The company also said it planned to spend another $3.5 billion during the back half of the year buying its own shares.

Source: Retailing Today

Home Depot Launches Connected Home Initiative

July 7, 2014

Nearly 2,000 Home Depot stores in the U.S. began offering a wide range of connected home devices that run the Wink platform on July 7.

The Wink platform unites close to 60 devices, creating the broadest set of connected home products in one ecosystem, with fifteen leading manufacturers of home products ranging from light bulbs and locks to window shades, irrigation systems and water heaters, according to Wink and Home Depot.

"When looking for new products and services, we believe it is critical The Home Depot provide our customers the connected home options and convenience they desire - one that is easy, affordable and gives them the choice in products they need," said Jeff Epstein, vp of home automation merchandising at Home Depot.  "With Wink, we've found a partner that supports the industry leading brands we already carry on our shelves and online."

Wink vp Brett Worthington said Home Depot's nearly 2,000 U.S. stores offer customers the broadest network of connected products.  "Together we are offering the simplest way to connect to products in the home from trusted brands like Leviton, Honeywell, Rheem, Lutron and Schlage."  There are close to 60 Wink-enabled products covering a variety of products from garage door openers and dimmers to ovens and air conditioners.  Manufacturer partners include Bali, Chamberlain, Dropcam, GE, Honeywell, Kidde, Kwikset, Leviton, Lutron, Philips, Quirky, Rachio, Rheem, Schlage and TCP.

All Wink-enabled products are operated through the free Wink app.  The Wink app lets consumers personalize their experience to what works best for their home.  For example, a consumer can operate just one light bulb or all of the light bulbs in a particular room, or they can group the light bulbs with other products in a particular area of their home.  According to Wink, its app makes consumers' lives easier by letting them adjust the thermostat or turn lights off after leaving the house, or control energy savings by shutting off the air conditioner when leaving and turning it back on right before getting home.

Source: Retailing Today 

Home Depot Overcomes Slow Start To Spring Selling Season In Q1

May 20, 2014

Despite getting a slow start to the year, The Home Depot rallied in the first quarter thanks to solid results in non-weather-impacted markets.

The home improvement retailer reported first quarter sales of $19.7 billion, up 2.9% from last year's first quarter.  Comparable store sales were up 2.6%.  Comp-store sales for U.S. stores were positive 3.3%.

The company also reported double-digit growth in net earnings - up 12.5% to $1.38 billion.

"The first quarter was impacted by a slow start to the spring selling season," said Frank Blake, chairman and CEO.  "But we had solid results in non-weather-impacted markets and expect our sales for the year to grow in line with guidance we previously provided."

That guidance calls for 2014 sales to increase about 4.8% from the previous year.

At the end of the first quarter, Home Depot operated a total of 2,263 stores.

Source: Retailing Today

Home Depot Looks To Win With Water Initiative

April 14, 2014

To help customers save water and grow its sales in the process, Home Depot will execute a massive customer education initiative later this month.

Home Depot regularly holds in store clinics to arm customers with knowledge to tackle home improvement projects, and its newest initiative applies that thought process to a less familiar merchandise classification.  On Saturday, April 26, every one of Home Depot's 1,977 U.S. stores will host an hour and a half long "Water Conservation Workshop," in which 10 home improvement projects will be covered.

The emphasis will be on those things that help customers save the most water such as converting to a dual-flush toilet, switching to EPA WaterSense labeled showerheads and faucets, and installing drip irrigation and rotary nozzle or dual spray sprinklers.  Home Depot estimates its customers saved 42.5 billion gallons of water through the purchase of WaterSense labeled products.

"At The Home Depot, we're committed to helping our customers solve everyday home improvement challenges, and for many, water conservation is one of those challenges," said Joe McFarland, president of the retailer's western division where drought conditions have been extreme.  "We have the products and our associates have the know-how to help our customers identify water-saving solutions and implement them at home.  These workshops help us to share that knowledge with our communities and inspire residents to take action."

In addition to hosting workshops, Home Depot said it adjusted its in-store environment for hundreds of stores in the West, creating unique signage and shifting inventory and displays to help make customers more aware of the various actions they can take to conserve water.

"Conserving water is one of the most important things we can do for our communities, for our environment, and for our economy," said Nancy Stoner, EPA acting assistant administrator for water.  "WaterSense labeled products provide efficiency without sacrificing performance and their use will help communities throughout the country preserve their water resources."

Source: Retailing Today

Home Depot Advancing Omnichannel Agenda

March 4, 2014

The nation's leading home improvement retailer is no stranger to e-commerce, but its efforts to offer a more robust omnichannel experience took a major step forward recently with the opening of the company's first direct fulfillment center.

The approximately 1 million sq. ft. facility less than an hour south of Atlanta in the community of Locust Grove is the first of three new direct fulfillment centers Home Depot plans to build in the next two years.  The other two facilities, strategically located in Perris, California, and Troy, Ohio, will stock more than 100,000 items, which are capable of being shipped to 90% of zip codes in the United States within 48 hours.

"We tried to look at it from the customer's perspective of how they want to be supported instead of designing a facility based on how we want to support customers," said Scott Spata, Home Depot's VP of distribution.  "These facilities are designed for same-day order picking and they will also allow us to experience out of stocks less often."

In addition to accelerating shipments to customers and more reliablle in-stock levels, Spata said the DFCs combined with a network of more than 2,000 stores will help the company more effectively satisfy shoppers' expectations for a seamless experience.  Currently, about one third of Home Depot's e-commerce volume results from shoppers who buy online and have their goods shipped from DFCs to stores, or shoppers who buy online and pick up goods that are already stocked at the stores.

An even more extensive assortment of more than 500,000 items is available from what Spata called the long tail of the Home Depot's product offering.  While the company can satisfy the majority of shoppers' needs between the 35,000 items in stores and the 100,000 items in DFCs, a more extensive assortment is available from the company's vendor-direct program.

"It is a seamless experience for the customer," Spata said, referring to orders placed on HomeDepot.com that are fulfilled directly by suppliers.

To further develop its omnichannel capabilities, Home Depot expects to pilot this year ship-from-store capabilities and refine the processes on how products ordered online and returned to stores are returned to distribution centers or made available for sale.  "Buy online, return in stores has been an absolute homerun for customers," Spata said.

However, those items are then accumulated in stores for shipment back to the DFC since Home Depot doesn't allow non-store SKUs returned to stores to be sold in stores.  That may change over time as the company's e-commerce volume builds, but for now the approach involves leveraging back haul capabilities and the creation of regional reclamation centers to more efficiently process returns.

While Home Depot has considerable work ahead to execute its omnichannel vision, the company has enjoyed tremendous e-commerce growth.  About the time the DFC opened last month, Home Depot CEO Frank Blake reported the company's U.S. stores produced a 4.9% comp increase and e-commerce sales grew by 50%.

"Our online customer satisfaction scores improved as we continued to enhance the experience across our full site, mobile and tablet and we're seeing accelerated improvement in our conversion rates," Blake said.

Those metrice are poised to improve going forward as the company integrates its new DFC into the supply chain and takes the locations in California and Ohio online.

Source: Retailing Today

The Home Depot Makes Changes To Executive Team

February 28, 2014

The Home Depot has promoted Craig Menear to president, U.S. retail.  Menear was previously EVP, merchandising, responsible for all merchandising departments and merchandising services and strategy; the company's supply chain network; global sourcing; vendor management; marketing; and online sales.

In his new role, Menear will add responsibility for all U.S. store operations, with Marvin Ellison, EVP, U.S. stores, reporting to Menear.

The company also announced that Mark Holifield, SVP, supply chain, has been elevated to EVP, supply chain and product development, with responsibility for sourcing and proprietary brands.  Holifiled will continue reporting to Menear.

"Craig is a world-class retailer and has done a terrific job in recent years leading some of the most important and successful initiatives in our company," said chairman and CEO Frank Blake.  "And Mark has successfully led one of the most extensive supply chain transformations in retail history.  Both are very deserving of their new leadership roles, and I look forward to their continuing contributions to our business."

Menear, a 34 year retail veteran, joined the Home Depot in 1997 as a merchandising manager in the company's Southwest Division, and steadily rose through the company's merchandising ranks to his current position.  Prior to joining the company, Menear held various merchandising positions at other retailers including Ikea, Builders Emporium, Grace Home Centers and Montgomery Ward, as well as operating an independent retail business.

Holifield has more than 30 years of experience in supply chain management.  He joined the Home Depot in 2006 to design and implement a complete transformation of the company's supply chain and logistics infrastructure, resulting in steadily improving inventory turns and in-stock levels.  Prior to the Home Depot, Holifield spent 12 years at Office Depot in supply chain roles of increasing responsibility, and earlier in his career, held supply chain roles at Frito-Lay and H.E. Butt Grocery.

Source: Retailing Today

Calendar Shift Affects The Home Depot's Fourth Quarter

February 25, 2014

Although the Home Depot's overall sales missed analysts' expectations, the retailer said the calendar shift, which resulted in one fewer week in the fourth quarter compared to the prior year quarter, affected its results.

The world's largest home improvement retailer reported fourth quarter total sales of $17.7 billion, down 3% from the same quarter last year, which benefited from an extra week in the calendar.  On a 13 week basis, the company's sales actually increased 3.9%.

Comp-store sales in the quarter increased 4.4% company-wide and 4.9% in the United States.  Net earnings were $1.01 billion, down slightly from $1.02 billion a year ago.

For the full year, the company pointed to strong performances across the board.  Net sales increased 5.4% to $78.8 billion - excluding the 53rd week from the prior year, the increase was 7.2%.  Comp-store sales increased 6.8% for the company, and increased 7.5% for the U.S.

"In 2013, we posted our strongest comp sales growth in 14 years as solid execution and the recovering housing market aided our performance," said Frank Blake, CEO and chairman.

Looking ahead, the company expects sales growth of about 4.8% in 2014, with comp-store sales growth of about 4.6%.  The company's guidance also called for seven new stores.

Source: Retailing Today

Home Depot posts strongest comp growth in 14 years

The Home Depot Announces Fourth Quarter & Fiscal 2013 Results; Increases Quarterly Dividend By 21 Percent And Provides Fiscal Year 2014 Guidance

Sales for fiscal year 2013 were $78.8 billion, an increase of 5.4 percent from fiscal year 2012. Excluding the 53rd week in the prior fiscal year, sales for fiscal year 2013 increased 7.2 percent from fiscal 2012. Total company comparable store sales for fiscal year 2013 increased 6.8 percent, and comp sales for U.S. stores were positive 7.5 percent for the year.

"In 2013, we posted our strongest comp sales growth in 14 years as solid execution and the recovering housing market aided our performance," said Frank Blake, chairman & CEO. "I'd like to thank our associates for their hard work and commitment to our customers."

The Company provided the following guidance for fiscal year 2014:

• Sales growth of approximately 4.8 percent
• Comparable store sales growth of approximately 4.6 percent
• Seven new stores
• Flat gross margin
• Operating margin expansion of approximately 70 basis points
• Tax rate of approximately 37 percent
• Share repurchases of approximately $5 billion
• Diluted earnings-per-share growth after anticipated share repurchases of approximately 16.5 percent to $4.38
• Capital spending of approximately $1.5 billion
• Depreciation and amortization of approximately $1.8 billion
• Cash flow from the business of approximately $8.8 billion

California Market Guide

The Accelerated Analytics team is pleased to announce the California market guide is complete and ready for download.  This valuable guide provides DIY / Hardline vendors with detailed insights into the California market.  

Click here to buy now!

The California market, with a population of 32,253,956 and total housing units of 13,680,081, represents a significant portion of both Home Depot and Lowe’s business in the United States. In fact, Home Depot drives about 10% of total revenue from California, and Lowe’s drives about 6% of its total revenue from California.

The California market report provides vendors with detailed research on California which can be used for understanding sales trends and for future planning. 

Key topics covered in this report include:

• Unemployment
• Construction activity
• Drought conditions
• Heating degree days
• Cooling degree days
• 2014 to 2017 economic forecast
• Demographics by store including: population, median age, percentage of high school graduate or higher, total housing units, median household income, foreign born population, individuals below the poverty line, consumer spending per household. 
• Store grade (A, B, C, D) assigned to each Home Depot and Lowe’s store based on 2013 dollars sold for all Accelerated Analytics vendors.
• Tutorial on how to conduct store analysis and assign store grades for your products.
• Comparison of store grades in zip codes with both a Home Depot and Lowe’s store. 
• Password for an interactive map of Home Depot and Lowe’s stores in California colored by store grade.
• Excel data file with data for each store which can be used for additional analysis.

Click here to buy now!

Home Depot Prepares For Its Busiest Season

February 12, 2014

Against the backdrop of a growing national debate over the minimum wage and part-time versus full-time workers, Home Depot has begun a huge seasonal hiring surge in preparation for spring.

The nation's largest home improvement retailer said it planned to hire approximately 80,000 seasonal employees, many of whom are part-time, the same day that President Obama was expected to sign an executive order unilaterally increasing to $10.10 the minimum wage the federal government pays contract workers.

"Spring is our peak hiring season, giving us the opportunity to find some of the best associates who are passionate about customer service," said Tim Crow, EVP human resources.

Job seekers can research openings and begin applying now at www.careers.homedepot.com.  All applicants must apply online.  Job opportunities are available on a market-by-market basis, based on individual store needs and geographical variance in climate.  The company encourages college students, retirees, veterans and reservists to apply.

Source: Retailing Today

Home Depot Bolsters Online Business With New Direct Fulfillment Center

February 10, 2014

The Home Depot has opened a new direct fulfillment center (DFC) in the Locust Grove suburb of Atlanta. 

It is the first of three new DFC's the company will open across the U.S. in the next two years, adding more than 3 million sq. ft. and approximately 1,000 jobs to its supply chain. The new distribution centers will increase the number of orders the company can ship the day they are received, increasing the speed of delivery for HomeDepot.com orders.

The company is also enabling faster order picking and shipping through new warehouse management and material handling systems. 

"This is a significant investment in our ability to say yes to customers with confidence," said Mark Holifield, SVP, supply chain.  "Yes, you have access to our entire inventory to fulfill your order.  Yes, you can expect a speedy delivery.  And yes, you can rely on information updates about your delivery."

The DFC's will stock approximately 100,000 products, extending The Home Depot aisle beyond the 35,000 products typically available at the average physical store.

The Locust Grove DFC will initially employ approximately 125 people, and will eventually employ approximately 300.  Future DFCs are scheduled to open in Perris, California and Troy, Ohio.

The Home Depot has 2,263 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.  In fiscal 2012, The Home Depot had sales of $74.8 billion and earnings of $4.5 billion.  The company employs more than 300,000 people.

Source: Retailing Today

Home Depot To Invest In Tech And Supply Chain Upgrades

December 12, 2014

The Home Depot reportedly plans to invest $300 million on technology and supply chain upgrades during its fiscal year 2014, which begins in February 2014.  According to the Wall Street Journal, the results will include three new fulfillment centers in California, Atlanta and Ohio by 2016, as well as same-day shipping for some online orders.

The new centers will dramatically increase the number of orders the chain can ship the same day they are received, which significantly expands the number of orders it will be able to deliver within two days or less.  With this same day shipping capability, these centers are geographically positioned to leverage parcel freight carriers' networks to deliver 90% of customers' parcel orders within two days, using economical ground service.  For example, when the network is complete, most customers will be able to order on a Wednesday by 5 p.m. with the product delivered by Friday, according to Home Depot.

Home Depot's total sales are expected to reach $79 billion during fiscal 2013, aided by a boost in online sales.  Other new programs for the upcoming fiscal year may include expanded in-home assembly and installation services.

Source: Retailing Today

Home Depot Closes Acquisition Of Blinds.com

January 24, 2014

The Home Depot has acquired Blinds.com, the Houston-based online window coverings retailer.  In explaining the appeal of the partnership, Home Depot cited Blinds.com's integrated user experience, on-demand staff and knowledge base.

"We're delighted to welcome the Blinds.com team into The Home Depot family," said Home Depot chairman and CEO Frank Blake.  "The acquisition of Blinds.com positions us well for expansion in the quickly growing online window coverings market.  In addition, their unique sales and service model is one we hope to learn from as we continue to create even better interconnected retail experiences for our customers."

"We're joining forces with The Home Depot because there is a huge opportunity to utilize each other's strengths, take additional share in this category and move even faster toward our vision of making the design, purchase and installation of quality window coverings as easy and affordable as possible," said Blinds.com founder and CEO Jay Stanfield.

The Blinds.com management structure and staff will remain in place at its Houston headquarters.  Specific terms of the deal were not disclosed.

Source: Retailing Today