Home Depot recently announced its Q1 earnings, with US comps of positive 3%. Here’s our quick take on comments made during its earnings call:
- For the consumer, we are investing in new category experiences that make it easier for a customer to shop their full project needs online. If a customer is redoing a bathroom and decides on a particular type and finish of faucet, chances are they probably want to see the full suite of matching bath faucets for vanity, shower and tub. In order to take friction out of this process, we are now rolling the ability to shop a collection using minimal clicks.
Our analysis in Gartner L2’s Digital IQ Index: Big Box made clear that guided selling continues to rise year-over-year, with sophisticated retailers pushing customers down the funnel. Unsurprisingly given its Genius status, Home Depot is among the few to incorporate direct e-commerce into its buying guides, as referenced in its earnings calls.
For example, its “Naturally Modern Bathroom” guided selling allows customers to add a number of items—including bathtubs, tiles, towels, and rugs—directly to their cart or wishlist. This makes it seamless for customers to add many, if not all, of the items they need to their cart and quickly complete that purchase.
- During the quarter, we continue to make progress, enhancing this interconnected customer experience, by investing in our stores to improve our front-end checkout experience, continuing to roll out automated lockers, streamlining our customer service desks and simplifying tools for our associates.
Home Depot remains at the forefront of omnichannel and does so in part by seamlessly linking the online and in-store experience. The retailer earned praise from Gartner L2 for providing customers with a wealth of information, including live inventory and product location, as well as separate call to action buttons for delivery and pickup on the product page.
- [W]e’ve got same-day delivery available for orders placed by 2:00 P.M. and next day after that time. And by the end of Q2, we’ll have the same day and next day capabilities for small parcel items from stores moving from 40% to 50% of the population.
Same-day delivery is the next battleground for retailers, with both Amazon and Walmart recently rolling out the service. Home Depot is one of the latest retailers to announce expanded capabilities, but it will almost certainly not be the last.