Ted Decker, the company’s new CEO, wants house experts to see Home Depot as more than a convenience store.
The merchant hopes to attract larger, planned orders from contractors, not just last-minute shopping for tools or finishing jobs. This major adjustment is part of Home Depot’s expansion ambition to reach $200 billion in annual sales beyond the pandemic.
On the company’s earnings call Tuesday, Chief Operating Officer Brian Decker said the company is building something fundamentally different and creative to get the pro planned purchase. On March 1, he becomes CEO.
Home Depot reported an 11% increase in sales year-over-year in the fiscal fourth quarter. However, the company expects “slightly positive” sales trends and low single-digit earnings per share growth in the coming fiscal year.
Home Depot management did not indicate when the business plans to reach the $200 billion threshold, but it would represent a nearly $50 billion increase in yearly sales.
Home remodelling efforts fuelled by the pandemic have increased Home Depot’s sales by almost $40 billion in two years. That’s almost the same as the company’s entire sales growth from 2009 to 2018.
Home professionals make up almost half of total revenues, says CFO Richard McPhail. On the retailer’s results call, he projected the North American addressable market at above $900 billion.