Meanwhile, Home Depot has taken several steps to grow
its pro business and sales to that segment are reported to
be outpacing the company’s average.
The company is offering pros private label cards that
have extended terms, special return policies and other steps
that are leading to a substantial number of new accounts,
higher than what Home Depot had originally anticipated.
Home Depot also recently designed and tested a pilot
plan to deliver products faster and more efficiently to pro
customers. The company says that it was encouraged with
initial sales and it has since expanded into additional markets such as Atlanta, GA.
“We saw a pretty substantial increase in the customer
option to choose delivery and we’re seeing double-digit
growth,” said Craig Menear, chairman, CEO and president
of Home Depot in a call with analysts following release of
the company’s Q1 earnings.
The company offers flexible delivery to contractors seven
days a week and next day delivery on in-stock items. It also
offers contractors the ability to order on line and pick up
orders in two hours, as well as beneficial credit terms and
Menear also said Home Depot expects to see more
growth in MRO sales due to its acquisition of Interline
Brands, one of the largest industrial distributors in the
“The Interline integration is progressing nicely,’ he told
financial analysts. “We continue to move forward on a
number of exciting sales driven initiatives, and we have
outlined a path to truly realize the value of the Interline
acquisition and the total pro opportunity over the next 18
to 24 months.”
Home Depot acquired Interline Brands last July for $1.63
billion, which was aimed to help it sell more supplies to
customers in the building and maintenance profession. The
company is pleased with the collaboration within its sales
organization as they jointly attack end user professional
Home Depot says it currently has a small percentage of
sales in building and maintenance and Menear said “we
think there’s lots of opportunity to grow.”
After releasing its quarterly results, Home Depot raised
its fiscal 2016 sales guidance and now expects sales will be
up approximately 6. 3 percent and comp sales will be up ap-
proximately 4. 9 percent.
Jack Keough is contributing editor of Industrial Distribution. You can reach him at email@example.com
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