Home Depot Predicts Direct Sales of $1B by 2010

Share this content:
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.


close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences and drive measurable results. PAN services clients out of the firm's four offices: Boston, San Francisco, New York City and Orlando.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above