Home Depot believes that new launches such as 10CrescentLane.com will help its direct-to-consumer division become a billion-dollar business by 2010.
Online sales at HomeDepot.com doubled in 2005, the company has announced. The company predicts overall 2005 sales growth of 10% to 12%, exceeding $81 billion for the 2005 fiscal year, which ends Jan. 29.
HomeDepot.com falls under the umbrella of Home Depot Direct. More than 3 million shoppers visited HomeDepot.com in 2005, say company executives, who believe their direct-to-consumer division has the potential to become a billion-dollar business by 2010. The Home Depot is No. 49 in the Internet Retailer Top 400 Guide to Retail Web Sites.
In late October, The Home Depot launched 10 Crescent Lane, a new catalog and e-commerce site that carries hundreds of products in merchandising categories ranging from decorative hardware and furniture to home accent and kitchen products. Looking ahead, targets for The Home Depot include compounded annual sales growth of between 9% and 12% during the next five years. It also plans on opening 400 to 500 new stores.
Online sales will play a part in their continued growth, forecasts Curt Barry, president of F. Curtis Barry & Co. Inc., a consulting firm specializing in customer contact center, operations and fulfillment, and systems. “They have the newer upscale lines, which are good avenues for growth. They’re aiming at increasing high-income customers,” he says.
Home Depot Direct’s Brett E. Lauter, director of emerging brands, will speak at the Internet Retailer 2006 Conference & Exhibition in an educational session titled Micro-Segmentation: The Internet Goes Where Stores and Catalogs Can’t.