The Home Depot Inc., No. 8 in the Internet 2017 Retailer Top 500, has acquired the online business of The Company Store, a retailer of textiles and home decor products, from Hanover Direct Inc. for an undisclosed amount.
“The acquisition of The Company Store provides product development and sourcing capabilities to help us expand our online decor business into broader categories across the entire home,” Craig Menear, chairman, CEO and president of The Home Depot said in an announcement about the deal.
The Company Store, which sells online at TheCompanyStore.com generated about $23.1 million in online sales in 2016, according to an Internet Retailer estimate. The acquisition, which closed Dec. 19, does not include The Company Store’s five stores.
Officials at Home Depot and Hanover Direct did not immediately respond to requests for comment.
In a webcast presentation to investors earlier this month, Home Depot unveiled a $5.4 billion plan to improve its e-commerce capabilities, make improvements to stores, and revamp its distribution system and add delivery options for customers. Investments in the company’s “One Home Depot” vision will come on top of the home improvement chain’s $5.7 billion “business as usual” investments and brings its three-year investment plan to $11.1 billion overall.
During the investor webcast, Kevin Hofmann, president of online and chief marketing officer, provided details on Home Depot’s progress toward its omnichannel goals and hints about its plans for 2018 and beyond.
Home Depot expects its total digital traffic to exceed 1.8 billion in 2017 and 60% of the retailer’s sales—online and in stores—to have been influenced by those visits, Hofmann said. That is because customers often come to Home Depot stores knowing exactly what they want because they have gone to the website first. In addition, the retailer has grown its online sales by about $1 billion per year for the past four years. Those online sales now represent 6.4% of total sales and account for 20% of Home Depot’s total growth, Hofmann said.Favorite