Home Depot has added a head-turning $15 billion to its sales footprint so far this year as shoppers prioritized home upgrades during the pandemic. That volume spike caused major supply challenges while attracting more competition in the niche, both through online and in-store retailing spots.
Yet Home Depot found ways to raise its game in the third quarter (which ended Nov. 1). While attracting double-digit growth in customer traffic and in average spending per visit, the chain logged a significant increase in shopper satisfaction as compared to the prior quarter.
In a conference call with investors last week, CEO Craig Menear and his team explained the key factors supporting that win, which should make it easier for Home Depot to withstand market-share challenges from the likes of Lowe’s and Wayfair
Pressing the multi-channel advantage
“We continue to invest in our digital assets, introducing new capabilities and different ways to engage with The Home Depot.” – Menear
Home Depot’s digital sales platform is a major competitive asset, and shoppers especially like the flexibility they have to pair online ordering with in-store pickups. The retailer found ways to improve this process in recent months, including by refreshing the digital shopping experience in the home lighting niche to make it more engaging.
Home Depot also drove a sales spike by marketing its Halloween sales event through its digital presence. That success helped push order volume through the online segment up 80% in Q3, with most of those purchases involving a physical trip to a store. “The distinct competitive advantage of our [multi-channel retailing strategy],” Menear said, “has never been more relevant.”
