The Home Depot gave an update on its multiyear investment into an interconnected customer experience during a call with investors and analysts. The Atlanta-based home-improvement retailer shared how investments made in the One Home Depot experience are resulting in several measurable improvements across multiple areas of the business. The program launched in December 2017 and the retailer has pledged to invest $11 billion into One Home Depot over a three-year period.
“One Home Depot is a full realization of the interconnected frictionless shopping experience that we started talking about several years ago,” CEO Craig Menear said on the call. “It enables our customers to seamlessly blend the digital and the physical world. Every initiative in our investment strategy was formulated using a customer-back approach that will drive results, not just over the next several years but for the long term.”
Investments in the first two years of One Home Depot initiatives include store enhancements, e-commerce solutions, delivery options, and a comprehensive pro customer ecosystem. Menear said investments into the One Home Depot experience are addressing the evolving needs of its customers. The retailer estimates its total market opportunity in the United States is $650 billion and it currently services only 15% of that market. By building on the company’s perceived competitive advantages, Home Depot hopes to capture more of the fragmented market.
On the call, Menear reported customers’ likelihood to shop at Home Depot again increased 50 basis points year over year (YOY), the number of transactions per hour increased 5.4% YOY, checkout time satisfaction increased 280 basis points YOY, and order management systems have been streamlined so that customer experiences are 35% faster.
The retailer’s investments in inventory has led to improved visual merchandising and refined product assortments. Home Depot reported associate satisfaction has increased as a result of more hours dedicated to associate training and development and enhanced benefits such as parental leave.
The retailer also highlighted its increased pro ecosystem as a highlight of early investments to the One Home Depot experience. Home Depot’s definition of pro includes remodelers and builders, as well as maintenance, repair, and operating supply workers. In the past two years, Home Depot has enhanced its pro tool rental program, launched car and van delivery express options, enhanced delivery and fulfillment options, launched and updated a B2B experience—Home Depot Pro—catered to the professional customer, and equipped associates with more tools to better understand the pro customer.
