While doing a little research today, I found some information on Home Depot’s website that I found pretty interesting. The following was on CEO Craig Menear’s page:
In 2013, under Craig’s leadership, HomeDepot.com sales grew 50 percent and accounted for $900 million of the company’s total sales growth of $5 billion.
So, what would Home Depot do without it’s main website, HomeDepot.com?
Well, in 2012, they would’ve potentially had about $450 million less growth in sales.
In 2013, they would’ve had $900 million less growth in sales.
Now consider that Home Depot has about 2,000 physical stores. $4.1B divided by 2,000 = $2,050,000
Growth Per “Store”
- 1 Website: $900,000,000
- 1 Physical Store: $2,050,000
Again, that $5B was “growth” as Home Depot had sales of $74.7B in 2013 with a gross income of $24.27B (net $4.54B) according to MarketWatch.com but the 1 online store kicked some big time butt compared to each of Home Depot’s 2000 “other” stores.
Home Depot’s income has steadily climbed year after year since according to MarketWatch, and considering online sales continue a steady climb year after year, I would bet the numbers from the website continue to grow, all while kicking each individual stores butt.
HomeDepot.com is a very valuable asset to Homer TLC Inc. The HomeDepot.com domain name is a very valuable asset, because with-out it, sales and growth would be a lot less!
I find it hard to believe home depot stores only average $2M per year, I just looked up our account with home depot, and we did about $80K in business with them, and we are nothing. with dozens of employees no way they only avg $2M per store.
You’re right, that number is way off. Each store does about 40 million per year. Some stores average 2 million per week.
Tom, the numbers were related to growth in 2013, not total revenue.
Too difficult to make a simple calculation comparing HomeDepot.com against the independent stores. They are all interconnected with the online store.
And the online revenue only equals 5% of the total annual revenue.
CEO goes into detail and explains in the latest transcript of how the consumer is using the online store now.
“Online sales grew proximately 25% in the third quarter and represent approximately 5.1% of overall sales. About 42% of all online orders are picked up in our conveniently located stores.”
http://seekingalpha.com/article/3693006-the-home-depots-hd-ceo-craig-menear-on-q3-2015-results-earnings-call-transcript?part=single