Client Description

The Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. The Company sells a wide assortment of building materials, home improvement and lawn and garden products, and provide a number of services. Home Depot operates throughout the United States, Canada, China, and Mexico.

As the world’s largest home improvement chain and one of the largest US retailers, the company operates nearly 2,275 stores in the US, Canada, and Mexico, as well as an online business. It targets the do-it-yourself (DIY) and professional markets with its selection of some 40,000 items, including lumber, flooring, plumbing supplies, garden products, tools, paint, and appliances. Home Depot also offers installation services for carpeting, cabinetry, and other products. One-third of Home Depot’s total sales in FY2016 came from business in the states of California, Florida, New York, and Texas.

In addition to its big-box retail stores in the US, Canada, and Mexico, Home Depot operates half a dozen Home Decorators Collection stores in six US states. The company’s Home Depot International subsidiary houses the company’s retail operations in Canada (Home Depot of Canada) and Mexico. The DIY chain also operates growing online businesses including blinds.com and homedepot.com.

Nearly 40% of Home Depot’s online orders are picked up through its Buy Online, Pick-up In Store (BOPIS) and Buy Online, Ship to Store (BOSS) programs. The company’s sales via online channels grew by 40% during fiscal 2016.

The Atlanta-based retailer’s top markets are in the states of California, Florida, New York, and Texas, which made up 33% of its total sales combined during 2015. Altogether, Home Depot boasts 2,000 US stores across all 50 states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. The chain also operates about 300 stores outside of the US (mostly in Mexico and Canada), accounting for roughly 15% of its store base. The company also has seven sourcing offices, located in Shanghai and Shenzhen, China; Taipei, Taiwan; Gurgaon, India; Rome; Monterrey, Mexico; and Toronto.

Home Depot sells its products through e-commerce, multi-channel retailers, wholesalers. Its three primary customer groups include Do-It-Yourself (DIY) Customers, Do-It-For-Me (DIFM) Customers, and Professional Customers.

Challenge

Many teams did not have the kind of data access required to efficiently drive growth. This was in part due to legacy systems, redundant processes, and too many ad hoc analytics requests of the in-house BI team, which in turn was creating a delivery bottleneck.

Solution

Enable HD.com, and other related business functions to better access, analyze, consume and publish data. Enhanced metadata, consolidated processes, replaced legacy BI with Microstrategy, and added Tableau for end-user data discovery. Empowered end users through a hub-and-spoke analytics model.

Benefit

Improved decision making as a result of improved understanding of the system because of improved analytics delivering more timely and relevant data. This in turn lead to better and faster decision making in web analytics, which drove an improved user experience. A 0.2% gross demand increase delivered annualized benefits equal to a 10x ROI.

  • Tools: Hadoop | Microsoft SQL Server Integration Services (SSIS) | Microsoft SQLServer | MicroStrategy | Tableau
  • Categories: Analytics, Big Data
  • Tags: Retail