Home Depot Predicts Direct Sales of $1B by 2010

Share this article:
Executives at The Home Depot said yesterday that its direct-to-consumer division has the potential to become a billion-dollar business by 2010.


In a presentation to investors, The Home Depot, Atlanta, unveiled its growth targets for 2010, which include building on the strong results already generated by the company's Web site, www.homedepot.com, and its two catalogs, 10 Crescent Lane and Paces Trading Company.


Though still a small percentage of Home Depot's total revenue, the DTC results are promising, the company said. In 2005, online sales doubled and more than 3 million shoppers visited the company's online properties each week.


On the Monday after Thanksgiving, Home Depot's site received 65,000 orders, company chairman/CEO Bob Nardelli said at this week's National Retail Federation's 95th Annual Convention & Expo in New York. Nardelli also said he plans to use the scope of Internet marketing in the display aisle across the company's 2,000 stores nationwide.


Home Depot is using catalogs to expand the brand's positioning by targeting upscale women, Shelley Nandkeolyar, president of The Home Depot Direct division, said at last month's National Center for Database Marketing Winter 2005 Conference in Orlando, FL. In September, Home Depot launched 10 Crescent Lane, a catalog featuring items such as candlesticks, brushed-steel scones and Oriental rugs, targeting women 30 and older with a high-income household profile of $175,000. It also recently launched Paces Trading Company, which focuses on high-end lighting.


In the next five years, the company expects to open 400 to 500 new retail stores, it told investors yesterday. It also expects to continue double-digit growth in its services business, and its at-home services such as flooring, fencing, roofing, cabinetry and others will account for almost 6 percent of its sales by 2010.


Another area of growth is the company's wholesale business for the professional market. By 2010, it expects that Home Depot Supply will generate 19 percent of overall sales. By the end of the decade, the division expects to operate 1,500 locations and to be the largest diversified wholesale distribution business in the United States.


Executive editor Mickey Alam Khan and senior editor Melissa Campanelli contributed to this report.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

7 Ways to Take Your Marketing Strategy to the Big Leagues

7 Ways to Take Your Marketing Strategy to ...

A game-winning omnichannel strategy must be seamless, synchronous, and symbiotic.

Pet World's Multichannel Marketing Is a Whole Other Animal

Pet World's Multichannel Marketing Is a Whole Other ...

The family owned pet store redesigns its website to bring the in-store experience online.

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.