The Home Depot Inc. confirmed to this publication Nov. 1 that it has shelved its 10 Crescent Lane and Paces Trading Company catalogs.
DM News previously reported that the home improvement retailer might have already shuttered one catalog and could be taking a second look at its direct business.
Paces Trading Company and 10 Crescent Lane, which were launched last fall, were an attempt by Home Depot to expand beyond its core brand. 10 Crescent Lane was a home decor title targeting upscale women, while Paces Trading Company focused on high-end lighting.
“As we monitored the progress of [Home Depot’s] direct business, it became apparent that Homedepot.com and Home Depot Direct catalogs were drawing the most traffic,” said Jean Osta Niemi, a Home Depot representative.
As a result, the merchandise in 10 Crescent Lane and Paces Trading Company is now available at the company’s flagship Web site at www.homedepot.com, and will be featured in the Home Depot Direct catalogs as well. The two brands will continue to exist online, Ms. Osta Niemi said.
Though these two catalogs have been shelved, the company’s overall direct business continues to grow and is on track to reach $1 billion in sales this year, Ms. Osta Niemi said.
HomeDepot.com receives 2.5 billion page views annually, more traffic than any other online destination in the home and garden category.
However, there are indications that Home Depot’s business development interests may rest elsewhere. Its push into supplying and servicing professional builders, contractors and maintenance workers was noted as a significant opportunity for the company by several analysts in an Oct. 1 Chicago Tribune article.
The home supply market is $410 billion while the do-it-yourself category tops out at $200 billion, according to industry estimates.
In the second quarter, the most recent period for which Home Depot has released results, the company’s retail segment grew 5.1 percent while same-store sales declined 0.2 percent. The supply segment, however, grew by 325 percent, driven by the recent acquisition of Hughes Supply as well as double-digit organic growth.