Five Home Depot merchandise highlights
The world’s largest home improvement finished strong in 2019, with a 5.3% U.S. comp-store-sales number for U.S. stores. Here are five keys to that fourth-quarter performance, as described by the company’s top merchant – Executive VP of Merchandising Ted Decker.
Looking ahead to 2020, Decker emphasized the retail power of cordless products. The retailer will reset its outdoor power equipment bays in the first half of the year, as more customers embrace cordless. Environmental friendliness is one selling point of cordless OPE. Another is advances in power and runtime. Borrowing from its power tool department, Home Depot is resetting its OPE assortment by brand.
“Through this new presentation, customers can clearly see and easily shop the value proposition that these cordless platforms bring,” Decker said.
- Appliances were running. With double-digit comps, the appliance department led the way in the fourth quarter. Other big ticket items sold well, too. Big-ticket comp transactions, or those over $1,000, which represent approximately 20% of U.S. sales, were up double-digits. Vinyl plank flooring, and installation services posted comps above the company average.
- Deflation deflates. Lumber and copper prices turned south in the first nine months of the year. But in the fourth quarter, Decker used the phrase “neutral impact,” to describe the impact of commodity prices on sales.
- No place like home. The company’s online-only home décor categories – called “HD Home” -- saw “significant growth,” he said. The retailer continues to build awareness for these assortments he describes as “high-quality” and “style-forward.”
- Strength with pros. Items like pneumatics, concrete, hand tools and caulks – items that appeal to the pro and contractor customer – out sold the company average in the fourth quarter. (Meanwhile, CEO Craig Menear said the company’s B2B website designed specifically for the pro customer has onboarded more than one million pro customers.)
- A slogan takes hold. Late last year, Home Depot replaced “More Doing. More Saving” with a new tag line: “How Doers Get More Done.” How’s it working? It’s still early, he said. But as an example of customer response to the new ad campaign, he pointed to double-digit growth in usage of mobile tools like product locator and image search. “We believe it is important to signal to our customers that The Home Depot is evolving, as their needs change,” Decker said.
Looking ahead to 2020, Decker emphasized the retail power of cordless products. The retailer will reset its outdoor power equipment bays in the first half of the year, as more customers embrace cordless. Environmental friendliness is one selling point of cordless OPE. Another is advances in power and runtime. Borrowing from its power tool department, Home Depot is resetting its OPE assortment by brand.
“Through this new presentation, customers can clearly see and easily shop the value proposition that these cordless platforms bring,” Decker said.