![]() One of the key achievements of Home Depot in the past few years has been to grow its sales without investing in additional physical assets. Connect Experience: Store To Online, Online To Store The company intends to pass on the savings achieved through this to the customers in the form of lower prices, and is a key to achieving the operating margin target.Ĥ. In order to ensure timely availability of its products, the company has implemented initiatives such as Project Sync, which has enabled Home Depot's warehouse workers to more quickly receive inventory delivered to distribution centers and stores. This has been achieved by making a considerable investment, in terms of time and resources, over the past several years. Home Depot's supply chain has been an immense source of value creation for its customers and shareholders, and can be considered one of the best in the industry. Connect Product To Shelf, Site, And Customer Hence, it has focused on bringing new and innovative products to the market that will save the customers' time and money.ģ. The company has realized that the customer will come to the store for as long as it is able to fulfill their needs. Connect Products And Services To Customer NeedsĪs a part of this strategy, Home Depot's merchant teams have increased their collaboration with suppliers to improve innovation and efficiency, which will, in turn, result in better value for customers and its products. This has been done making enhancements to its Pro MyView system, which gives its pro account sales associates (PASAs) better insights into the customer, and how to improve their engagement.Ģ. In the recently released third quarter earnings, the company stated that it is seeing positive results from its work of putting salespeople on the street to sell to contractors. The company has also consolidated its outside sales force to better align it to the needs of the pro-customers, along with an increased investment in enhanced tools for the associates to address such needs. Home Depot has implemented a number of conveniences such as buy on-line pick up in-store, buy on-line ship to store, and buy on-line deliver from store, to serve the customers better. The chart below has been made using our new, interactive platform:ġ. We have a $172 price estimate for Home Depot, which is 5% below the current market price. Below we'll highlight the main strategies the company is following, to achieve its new target of garnering revenues in the range of $115 billion to $120 billion by 2020, along with an operating margin of $14.4% to $15.0%. The company's seamless integration of its brick-and-mortar stores with its online channel has helped it immensely to remain popular with its customers and associates. The company is well on its way of achieving, and, in fact, exceeding this target. Towards the end of 2015, the company had set itself a target of reaching $101 billion in sales by the end of 2018, up from $88.5 billon that year. The fact that Home Depot ( HD ) has been able to continue to grow and thrive in this new environment is commendable. ![]() Amid a changing retail landscape, many companies have had to adapt in order to stay relevant in today's day and age.
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