**Atlanta**: The Home Depot reports a 9% increase in digital sales during its fourth-quarter earnings call, as executives outline strategies to enhance offerings for professional customers, including improved shopping experiences and workforce training, despite economic challenges impacting the market.
The Home Depot is advancing its investments and strategic initiatives to bolster its position within the professional market, a move aimed at enhancing both its digital and physical offerings for professional customers. During a fourth-quarter earnings call on February 25, company executives detailed these efforts, which have shown positive results, including a 9% increase in digital sales amid challenging economic conditions.
Ann-Marie Campbell, senior executive vice president at The Home Depot, highlighted the company’s focus on catering to professional clients, indicating, “Growing pro is a key part of our growth strategy.” She elaborated on the effectiveness of recent enhancements, stating, “It’s clear our initiatives are working with an improved shopping experience for all our pro members. We know all pros shop our stores and we have invested to simplify and enhance the in-store shopping experience.”
The company’s strategy includes improvements such as job site deliveries, bulk pricing offers, and personalised account management, aimed at streamlining the experience for professional customers. Furthermore, The Home Depot is investing in workforce training to better assist these clients. In terms of expansion, the company has opened 12 new stores in 2024 and plans for 13 additional stores in 2025.
Despite facing headwinds from high interest rates, The Home Depot’s professional segment has displayed growth, which has helped mitigate slowing consumer demand in other areas. Campbell remarked, “All these capabilities allow us to win a greater share of wallet with all our pro members,” as the company has recorded a meaningful lift in sales across various professional segments.
Jordan Broggi, executive vice president of customer experience and president of online, shared insights into the advancements in digital platforms, stating that online and professional consumers are benefiting from improved browsing and search functionalities. “All those investments are coming together to drive an improvement in conversion rates and increased engagement across channels,” Broggi noted.
The Home Depot’s commitment to an omnichannel strategy has been highlighted by a PYMNTS Intelligence report, which indicates that nearly 40% of consumers engage in “click-and-mortar” shopping, combining both digital and physical channel experiences. For the first time in two years, the company’s comparable sales saw an increase, reporting a rise of 0.8% in the fourth quarter, alongside an impressive 14.1% increase in total sales, reaching $39.7 billion.
CEO Ted Decker expressed optimism regarding their fourth-quarter performance, stating, “Our fourth-quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects.” For the fiscal year 2024, total sales climbed to $159.5 billion, marking a 4.5% increase, although comparable sales fell by 1.8%.
Looking ahead, The Home Depot’s executives provided a first-quarter sales forecast projecting a 2.8% increase amid an unpredictable economic backdrop. CFO Richard McPhail shared confidence regarding the company’s investments and future opportunities, stating, “We feel great about the investments we made in 2024, the progress we made, and the significant opportunities as we look ahead.” However, he also acknowledged the uncertainties surrounding larger remodeling projects, noting, “We expect continued pressure on larger remodeling projects,” as customers remain cautious but are anticipated to engage in significant renovations as homes age.
Source: Noah Wire Services
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