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Home Depot Inc (NYSE:HD) Might Take The Crown For The Dotcom Segment

Home Depot Inc (NYSE:HD) might beat its rival, Lowe’s Companies, Inc. (NYSE:LOW) in the home improvement retail business.

Home Depot and Lowe’s have been on an upward trend since the economic crisis. The steady growth has been receiving positive reinforcement from the recovering U.S. economy especially the housing sector. Although its macroeconomic basics were not favorable over the last quarter of 2014, Home Depot reported attractive revenues amounting to $20.90 billion. The Home Depot revenues were well above analyst expectations.

Lowe’s, on the other hand, was caught up by slow performance. Its revenue gains amounted to $14.1 billion within the same period and were lower than analyst expectations. A couple of factors can be attributed to Home Depot’s favorable growth curve, but the most notable of them all is the online segment.

Home Depot was able to reach more than 2,200 stores compared to Lowe’s which only reached 1,840 stores. This automatically translates to more efficiency and better network integration in product shipping for Home Depot. The online sector accounts for 40% of all the online orders, meaning it played a very significant role for the company.

The introduction of the “Home Depot Delivers” that was introduced in 2013 was meant to encourage same day deliveries. It played a major role in refining Home Depot’s services. These efforts have led to the opening of a third fulfilment center to handle the increasing capacity.

Home Depot Inc (NYSE:HD) also refined the DIY (do it yourself) and DIFM (do-it-for-me) features to improve service to customers. This means the company has introduced a wide array of services on its websites thus providing more information and more options for clients. These changes have provided a significant drive for customers to use the company’s services.

Finally Home Depot’s in-store technology has been customized to perfectly complement the products available in the stores. The strategies have clearly been working for the company. In 2014, Home depot’s web sales amounted to $3.7 billion compared to $1.4 billion for Lowe’s.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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