HOME DEPOT SALES GREW 4.2% in Q1. This was lower than analysts’ expectations, primarily due to gardening supply sales dropping in March and April due to cool weather. However, the other departments for the retailer performed ahead of expectations and showed high growth over last year.
Online orders were 6.7% of Home Depot’s total sales last year and 45% of online orders were picked up in stores. In an effort to meet these customer delivery demands, bring down transportation costs and improve inventory management, the retailer announced a 5-year, $1.2 billion plan to add 170 distribution centers across the US for same day delivery and direct ship to customers. This will enable them to reach 90% of the US in one day or faster. Home Depot also plans to build 7 e-commerce centers and the use of a greater fleet of small vans and trucks to deliver to local professional customers and contractors.
Accelerated Analytics customers who utilize their Power Pack of POS reporting tools for Home Depot sales and inventory reporting continue to grow in excess of the retailer’s overall sales growth numbers. In Q1 2018, Accelerated Analytics customers grew 5.51% in sales over Q1 2017. Utilizing a strong set of exceptions and inventory reports help these vendors stay on top of Home Depot initiatives and drive overall and same-store growth consistently.
Accelerated Analytics awarded its third and final 2018 INNOVATION AWARD to General Merchandise and Apparel category winner, Vera Bradley. Accelerated Analytics CEO, Chad Symens, and Director of Sales and Marketing, Jen Freyer, presented the award to Shequeita Orr, Vera Bradley’s Director of Sales and Business Planning, in their NYC showroom. The Vera Bradley team uses their Accelerated Analytics POS Apparel and Fashion reporting solution for their key department store and military store channels. Their ability to use the reports to strategize and effectively market their assortments earned them this year’s award. Congratulations to the Vera Bradley team!
Accelerated Analytics is excited to officially announce the first of its three 2018 INNOVATION AWARD winners is W.M. Barr. W.M. Barr has been a customer of Accelerated Analytics for 10 years, utilizing best practice POS reporting to manage their business at The Home Depot. Accelerated Analytics awarded W.M. Barr this honor in the DIY, Home and Hardware category for demonstrating the most innovative use of analytics through its POS reporting tool. The award was presented to W.M. Barr President, Scott Beal, at the National Hardware Show in Las Vegas, last week. Presenting the award was Accelerated Analytics President and CEO, Chad Symens. Accelerated Analytics looks forward to their continuing strong partnership with the W.M. Barr team for many more years. Congratulations W.M. Barr team!
W.M. Barr sells multiple brands, including Damprid, Goof Off, Klean-Strip and many others.
Congratulations to our customers working with The Home Depot! Last month, THD released it’s Q4 performance, reporting 7.5% growth in sales over the same period prior year. During the same period, our THD customers more than doubled that pace, posting a collective 16.3% increase in sales over the prior year. Long term sales growth guidance for THD as we go into 2018 is 4.5-6.0%. During the Q4 Conference call, THD highlighted it’s initiatives to increase same-day or next-day local delivery to consumers from the stores and increased pickup in-store for online orders. Targeted marketing and customer experience development is being aimed at high income baby boomers, first time home owner millennials, and a continued emphasis on pros (especially in Canada). As far as total year over year comps, Home Depot announced for fiscal year 2017 growth of 6.7%. Accelerated Analytics customers outperformed this number, growing on average a whopping 14%!
Accelerated Analytics can help you focus on the stores that matter most in these initiatives. Contact email@example.com to setup a quick demo of how you can obtain reports to ensure you keep you finger on the pulse of your key retail partners’ major initiatives.
The Home Depot announced its Q4 ’17 performance was at 7.6% growth over Q4 ’16, posting a revenue of $23.9 billion. This outperformed analysts’ expectations by 0.8%. At the end of Q4 ’17 the home improvement retailer operated 2,284 stores versus 2,278 in Q4 ’16, an addition of 6 stores. Same store comparisons show a 7.5% growth. Analysts expected a 6% increase. US same stores grew 7.2%.
Home Depot’s same store growth is attributed to 5.5% increase in average ticket amounts and 1.9% increase in number of transactions compared to last year. The company’s online sales grew 21% over last year. For the 2017 retail year in total, Home Depot posted revenues of $100.9 billion.
This now opens up expectations for the 2018 retail year. Analysts are expecting revenues in 2018 to reach $107.8 billion, representing 6.8% growth. Home Depot proposes to open 3 new stores this year and set same store comp goals for this year at 5%. To download the infographic provided by Home Depot, click here.
Reliance Worldwide Corporation was presented with the Spark Award at the Suppliers Reception held on Sunday, January 7, 2018 at The New American Home® in Orlando, Florida, prior to the opening of the International Builders Show®. RWC recently joined Accelerated Analytics family of customers in the DIY, home and hardware retail segment, to process their retail POS sales and inventory data and provide actionable reports for their sales, planning and executive teams.
Lowe’s announced today that CEO, Robert Niblock, will be retiring after 25 years with the home improvement retailer. Mr. Niblock will retain his position as chairman, president and CEO until the board selects his replacement. He became CEO in 2005 and was in charge of the $2.4 billion acquisition of Canadian retailer Rona, Inc.
“As we transition to the next chapter, I have great confidence in the strength of our team and the opportunity ahead for Lowe’s,” Niblock said in a statement. “I look forward to assisting the board with its search, and I am committed to supporting a seamless transition for all of our stakeholders.”
David Batchelder, who is a new Lowe’s board member and former director at rival Home Depot, will be chairing the committee to find Niblock’s replacement. Lowe’s executives are looking for ways to increase revenue and improve customer results, and did recently close in on Home Depot with same store sales growth.
The National Association of Realtors announced Wednesday that previously owned home sales in February grew 3% over the previous month. Sales versus February of last year were up 1.1%. This comes after a two month drop in sales in January and December. The change in February eases concerns that the housing market had peaked. However, the market appears to be shifting from new home sales to previously owned home sales. Demand for previously owned homes is rising due to increased mortgage rates and higher home prices, which happen when other parts of the economy improve. The national median home price rose to $241,700, and the average interest rate for a 30-year, fixed-rate mortgage are now at 4.4%. Previously owned homes are seeing the higher demand and a smaller availability, with those current homeowners wary of selling and getting into a new home with higher rates. Builders are ramping up construction but are struggling. Total US housing starts in February declined 7%.
February was a huge month for retail employment, seeing an increase of over 46,000 new jobs over January. This was four times greater than the amount of jobs added in January over December. General merchandise stores were up by 17,700 jobs. Clothing and accessory stores were up 14,900, and building materials stores added 10,300 jobs.
“This substantial gain in retail jobs is a significant positive sign regarding the health and viability of the industry,” said Jack Kleinhenz, NRF chief economist. “It is stronger than expected and there were broad gains across most retail sectors.”
With the improvement in the economy and job growth, construction hiring is also expanding. The segment added 61,000 jobs in February, which was the biggest gain in over 11 years. With the housing recession that ended in 2009, there were 500,00 jobs cut, so growth now is still catching up to former levels, which equates to more room for growth in jobs for the sector.