Home Depot to focus on internet sales

ATLANTA -- The Home Depot has for decades grown by adding stores. Now, the Atlanta-based home improvement giant is turning away from opening stores and looking to internet sales for growth.

This year, The Home Depot will open two distribution centers and only one store, reports The Wall Street Journal.

"The retail model forever was to increase sales through opening additional units, but as you added stores to a finite group of households, each store becomes less profitable," Home Depot CEO Frank Blake told the WSJ. "So the decision was made to stop opening additional boxes."

The Home Depot's newest location is an online distribution center in Locust Grove that is 10 times larger that the retailer's average store, the paper notes.

The change in direction won't be easy, the WSJ says. In addition to selling humidifiers and paint, the home improvement giant has to determine how to get heavy bath tubs and patio sets from warehouses to customers' homes within days, the WSJ says.

Home Depot now offers more than 600,000 items on its website, compared with 35,000 in a typical store, the WSJ added.

(Atlanta Business Chronicle)


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