Professional Customer - The Home Depot · Pro Loyalty Program Operations Merchandising Account...
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2015 INVESTOR AND ANALYST CONFERENCE Professional Customer Bill Lennie Executive Vice President Outside Sales & Service 2015 INVESTOR AND ANALYST CONFERENCE Professional Customer 2
Transcript of Professional Customer - The Home Depot · Pro Loyalty Program Operations Merchandising Account...
2015 INVESTOR AND ANALYST CONFERENCE
Professional CustomerBill LennieExecutive Vice President Outside Sales & Service
2015 INVESTOR AND ANALYST CONFERENCE
Professional Customer
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2015 INVESTOR AND ANALYST CONFERENCE
Unified Approach to Our Pro
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Renovator MRO
Services
2015 INVESTOR AND ANALYST CONFERENCE
Professional Customer Opportunity
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$550B Total Addressable U.S. Market
Home Improvement Retail
Pro ($120B)
Consumer ($180B)
MRO
Services (Product Pull Through)
Services (Labor)
Pro
ducts
Serv
ices
Sources: 2014 HIRI Reference Guide; 2015 Harvard University “Emerging Trends in the Remodeling Market”; NAICS; and external market analysis
2015 INVESTOR AND ANALYST CONFERENCE
Professional Customer Opportunity
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Home Improvement Retail
Pro ($120B)
Consumer ($180B)
MRO
Services (Product Pull Through)
Services (Labor)
Pro
ducts
Serv
ices
U.S. Sales
$80B
Share
15%
$550B Total Addressable U.S. Market
Sources: 2014 HIRI Reference Guide; 2015 Harvard University “Emerging Trends in the Remodeling Market”; NAICS; and external market analysis
2015 INVESTOR AND ANALYST CONFERENCE
Professional Customer Opportunity
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One Approach to Pro
Home Improvement Retail
Pro ($120B)
Consumer ($180B)
MRO
Services (Product Pull Through)
Services (Labor)
Pro
ducts
Serv
ices
U.S. Sales
$80B
Share
15%
Sources: 2014 HIRI Reference Guide; 2015 Harvard University “Emerging Trends in the Remodeling Market”; NAICS; and external market analysis
2015 INVESTOR AND ANALYST CONFERENCE
Pro Customer Focus Areas
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Primary
Opportunities
Secondary
Opportunities
Non-Core
Segments
Specialty Trades
Property Management
Restoration Renovation Builders
Large (B2B / MRO)
Specialty TradesInstitutional,Hospitality & Residential
Restoration &Repair Companies
Renovation Companies
Industrial &Commercial Builders
Residential & Custom Builders
Medium (Complex)
Specialty &Seasonal Trades
Multi-Family Renovator / Remodeler
Small (Transactional)
Handy Person & Property Manager
Installation ServicesPu
rch
ase T
yp
e
2015 INVESTOR AND ANALYST CONFERENCE
Grow the Pro Initiatives
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Renovator | Remodeler Installation ServicesMaintenance, Repair,
Operations (MRO)
2015 INVESTOR AND ANALYST CONFERENCE
Pro Strategy: Highlights
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Not Started
In Progress
Job Site Delivery
Loading Assistance
Dedicated Pro Cashiers
Increased Speed
of Checkout
Enhanced Delivery
Customer RecordStore SpecificProduct Depth
Expanded
e-Procurement
Targeted Product Promotions
Reserved Parking
Expanded Special Order Assortment
Pro Xtra Program
Foundation
Pro Account
Representatives
Pro Loyalty Program
Operations Merchandising Account Service
Effective Outside Selling Tools
Increase Product Sales
to Installers
Quote Center
Extended Credit Offering
Complete
2015 INVESTOR AND ANALYST CONFERENCE
Pro Customer Offerings
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Pro Relevant & Trusted Brands
Credit Financing
Delivery
Pro Xtra Benefits
Purchase
TrackingExclusive
OffersBusiness
Tools
2015 INVESTOR AND ANALYST CONFERENCE
Services: Pros in the Home
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The Home Depot Performs ~2M Installs a Year with ~100,000 Badged Installers
Installation Services
~68% from the Service Itself
~32% from Product Pull Through
Windows Heating & CoolingKitchen, Cabinetry &
Countertops
Flooring
Roofing, Siding,
Insulation & GuttersDoors & Garage Doors
Outdoor Structures &
Fencing
Window Treatments,
Mech. & Home Systems
RedBeacon Pro
2015 INVESTOR AND ANALYST CONFERENCE
Services: Pro Strategy
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Strengthening Installer Relationships is a Strategic Focus
Services Pull Through vs. Operating Margin
Shrink to Grow
Sell Product to Installers
Provide Referrals for Services Outside of Our Core Offering
2015 INVESTOR AND ANALYST CONFERENCE
MRO: Interline Capabilities
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Outside Sales & Account
Management
Expanded
Assortment
Distribution
Assets
2015 INVESTOR AND ANALYST CONFERENCE
Where We Are Going… Integrated Solutions
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Out of the Box
In the Box
One Account, with Cohesive
eCommerce Solutions
Unified Inventory & Ordering
Same Day Delivery & Pickup
Single Sales Organization
Delivering Dynamic Sales
Engagement
Blending Our Strengths to Create
a Better Pro Experience
One Home Depot
2015 INVESTOR AND ANALYST CONFERENCE
Interline Integration & Strategy Timeline
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First 90 Days Second 90 Days 18-24 Months Thereafter
Functional Integration & Quick Wins
BusinessStrategy
Development
Realization of Full Pro Opportunity
One Account
Single Unified Sales & Support
Unified Inventory & Ordering
Same Day Delivery & Pick-up
2015 INVESTOR AND ANALYST CONFERENCE
Renovator MRO
Services
Bringing it All Together
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