The Home Depot on its December 2025 Investor Day detailed how nearly a decade of supply chain investment, a $25 billion ecommerce business and accelerating use of artificial intelligence (AI) are reshaping its customer and Pro experiences, as the retailer pushes to become what it calls the most “interconnected” operator in retail.

Jordan Broggi, executive vice president of customer experience and president of online, said Home Depot’s competitive advantage comes from integrating stores, delivery assets, associates and digital platforms into a single operating model.

“We’ve built the best interconnected experience in home improvement,” Broggi told investors. “What’s unique to The Home Depot is the combination of having the best products, store locations, associates, delivery assets and digital capabilities that come together to deliver a best-in-class interconnected experience.”

Home Depot’s online business now generates approximately $25 billion in annual sales, placing it among the largest ecommerce platforms in retail, Broggi said.

“Our online business generates sales of approximately $25 billion, making us one of the largest ecommerce players across any segment of retail,” he said.

The Home Depot Inc. ranks No. 4 in the Top 2000 Database. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual ecommerce sales and more. Home Depot is also the top-ranked retailer in the Top 2000’s Hardware & Home Improvement category.

How fulfillment speed helps drive $25 billion in Home Depot’s annual ecommerce sales

Customer engagement spans both physical and digital channels, with more than 6 billion visits annually across stores, websites and mobile platforms. Broggi emphasized that customers move fluidly across those touchpoints rather than following a single path.

“There’s not a single linear journey,” he said. “There are millions of paths across our physical and digital assets.”

Broggi traced Home Depot’s current delivery capabilities to investments it first outlined at its 2017 investor conference. At the time, the company set out to build a two-day parcel network.

Over the past eight years, Home Depot has added 200 logistics facilities. That includes about:

• 20 direct fulfillment centers.
• 160 market delivery operations.
• 17 flatbed distribution centers serving building materials and Pro customers.

“These assets are unique in our industry,” Broggi said. “But it’s the power of these assets working together in combination with our stores that leads to a supply chain network that’s unmatched.”

As a result, Home Depot now delivers the same day or next day for more than half its stocked items. That’s more than triple the rate it had in 2022. Delivered sales account for approximately 30% of total Home Depot revenue, he said.

While delivery speed matters, Broggi said reliability is critical for professional customers, where missed deliveries can disrupt jobsites and increase costs.

“If a Pro does not have the product at the site when they need it, then their costs increase,” he said.

Rather than focusing on on-time percentages, Home Depot tracks failures and works to eliminate them.

“We don’t celebrate that the vast majority of our deliveries are perfect,” Broggi said. “We obsess over the misses.”

Despite rising delivery volumes, the company expects 2025 to be its highest year ever for delivery customer satisfaction. It also plans to improve further in 2026.

Where AI plays into Home Depot’s digital business

Broggi said artificial intelligence is now embedded across Home Depot’s digital and fulfillment stack, from search and recommendations to sourcing logic and delivery routing.

One early use case was catalog enrichment.

“Generative AI helped us populate attributes and images that were previously too costly or cumbersome to enhance,” he said.

That work led to Magic Apron, Home Depot’s proprietary generative AI shopping assistant. It launched the tool in October 2024.

“We were one of the very first retailers across any segment of retail to offer an on-site generative AI experience,” Broggi said.

Since launch, Magic Apron has expanded its functionality and is contributing to higher conversion rates.

Home Depot is also applying AI to complex Pro use cases. Broggi highlighted the AI Blueprint Takeoff Tool, which converts PDF blueprints into materials quotes.

“This is a very complex use case,” he said. “The first edition of the tool has already reduced the cycle time dramatically.”

AI is also being used to proactively identify high-risk orders and improve sourcing and delivery decisions, leveraging historical jobsite data and customer behavior.

The company has rebuilt its chat and SMS platforms using generative AI. It has opted to replace rule-based bots with conversational tools.

“Customers can simply describe what they need and receive instantaneous help,” Broggi said.

He added that customer self-service rates have tripled. That has improved satisfaction while lowering service costs.

Looking ahead, Broggi said Home Depot will continue investing in AI-driven agents, expanded catalog connectivity, and a major refresh of its mobile app, which now has about 20 million active users.

The company is also rolling out real-time tracking for bulky deliveries across all categories, providing visibility for both consumers and Pro customers.

“Our goal is to be the best interconnected experience in all of retail,” Broggi said. “And we will continue to invest to drive growth across the business.”

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