Home Depot is seen as largely Amazon proof via sales of appliances, home improvement items, and tools. For instance, tickets over $900 represent more than 20 percent of Home Depot's US sales, which were up 6.6 percent to $26.5 billion in the second quarter.
But don't confuse Home Depot's defensible retail position as a low-tech endeavor.
On Home Depot's earnings conference call, executives outlined a bevy of tech projects that are starting to deliver returns. The company in December outlined its projects to revamp its supply chain, improve the customer experience and make online and brick-and-mortar sales seamless. Here's what Home Depot sees as the customer touch point and buying cycle.
Every retailer is chasing omnichannel sales, but Home Depot appears to be delivering as the likes of Macy's, JCPenney, and a bevy of others struggle.
Here are some of Home Depot's tech projects at a high level:
Our online business had strong growth in the quarter with double-digit traffic growth and improvement in conversion. Our interconnected retail initiatives continued to evolve to meet the changing demands of our customers. Mobile and tablet are over 50 percent of our traffic and are important tools that our customers use to engage with our products, our stores and our associates.
We are enhancing the functionality and mobile with features like larger and clearer product images, live mobile chat, and a simplified checkout experience.
Approximately 42 percent of our online orders are now leveraging our store footprint for fulfillment and nearly 90 percent of our online product returns are processed through the convenience of our stores.
Now it's possible that Home Depot could be disrupted by Amazon, but for now the retailer considers Prime Day an ally. Decker was asked about Prime Day and said "it draws a lot of shoppers online and our customers respond. We have a good day drafting off Prime Day."
Home Depot's return on investment case for these tech projects is pretty simple.