Home Depot Redesigns Website and Mobile App, Sees Online Sales Increase 17%

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Home Depot Redesigns Website and Mobile App, Sees Online Sales Increase 17%

By Nicole Gillo - 12/15/2016
Following a complete redesign of its website, Home Depot saw double-digit sales growth of its online business in Q3 2016. The website now offers content enhanced to display in full screen, optimizing desktop and tablet displays for customers. During the quarter online sales grew more than 17% and represented 5.6% of overall sales. More than 40% of online orders are picked up in the store, which is a positive sign of physical stores continued relevance with customers.
 
“We made significant changes for online experiences in the third quarter,” said Ted Decker, EVP of merchandising, Home Depot on a recent earnings call with analysts. “We rolled out an updated HD.com site and redesigned our app, both without interruption. The update includes an expanded buy box which now makes it easier for our customers to select their preferred fulfillment option at checkout whether that be delivered to home or picked up in store. These changes have already yielded positive results as we have seen improvements in overall site performance.”
 
During Q3 2015, the retailer opened and began shipping from its third direct fulfillment center in the U.S. With this distribution infrastructure in place, Home Depot has been better able to serve the needs of online customers faster and more directly.
 
“We are still assorting the appropriate products to house in our three DFC's but we’ve been able to reduce delivery costs and improve overall customer experience,” commented Craig Menear, Home Depot’s chairman, CEO and president. “We continue to invest in our supply chain transformation by optimizing our network through initiatives like Supply Chain Sync.”
 
This quarter, the retailer began the rollout of Sync to its northern division and continues to onboard new suppliers in the southern and western divisions. This is a multi-year, multi-phased endeavor, but thus far the progress has been positive.
 
Changing customer expectations are requiring that the retailer simplifies its operations in order to improve productivity and at the same time reinvest in the customer experience. Reducing both time and footsteps needed to move freight end-to-end, or from truck-to-shelf will enable the retailer to reallocate associate time and enhance the customer experience. One way Home Depot is reinvesting in the customer experience is through initiatives such as COMS and BODFS.
 
“COMS is our new customer order management system that was fully deployed last quarter in all U.S. stores,” said Menear. “And BODFS or buy online, deliver from store remains on track to be rolled out by the end of the fiscal year. In the 1,600 plus stores where we have BODFS, our on-time delivery service is now exceeding our target and we have seen a double-digit increase in the number of deliveries. We’re pleased with the positive customer response to this enhanced delivery option.”
 
To learn more about how data has quickly become the most powerful tool in today's marketing world, join David Abbott, VP of integrated media and online marketing, Home Depot at the NRF Big Show 2017 on Monday, January 16 for his “Data: The New Currency for Retail Marketers” presentation.
 
For more on NRF 2017 be sure to check out RIS’ preview guide here