In
a graveyard of disappointing results from major US retailers Home Depot has
exceeded analysts expectations and the
reasons why could be a lesson for all retailers.
Home
Depot is the Bunnings of the US. It is their largest home improvement retailer,
ahead of Lowes. Home Depot posted sales of $23.9B to beat expectations in a
period of sluggish consumer demand and they credit their performance on -
1.
Nailing their online experience with
quicker check in/check out times. Making it easier for online customers has
reduced delays and increased sales. Online represents 6.6% of Home Depot sales.
2.
Fine tuning their app. Personalising the
experience for app users including relevance for location and buying patterns.
3.
Broadening their customer appeal. While
other retailers become obsessed with consumer groups, like millennials, Home
Depot acknowledges all categories of customers.
4.
Spreading its supplier base. This provides
insurance against things they can't control like supplier bankruptcies.
5.
Keeping in touch with innovation like LED
lighting and pet proof carpet.
6.
A robust in-house credit card. 22.6% of
their sales are conducted through their own credit card.
Forbes
concludes that Home Depot have concentrate on the retail basics and simply made
them better.