Catalog and eCommerce home goods and textile retailer The Company Store has been acquired by Home Depot, the home improvement giant announced Thursday (Dec. 28). The deal closed on Dec. 19, according to reports from RetailDIVE. Terms have not been disclosed, but five brick-and-mortar The Company Store locations were not included in the deal.
Home Depot has made online an important growth area recently, noting nearly two-thirds of sales are influenced by a digital visit, whether the sale is ultimately made online or in a physical store. At its investor day, the company noted it is shifting to more of an omnichannel strategy to address the needs of both consumers and professionals.
The Company Store largely followed a direct-to-consumer model, beginning as a catalog company in 1911 and transitioning into eCommerce without getting more than its toes wet in the physical retail world.
While it’s unlikely the acquisition will grow The Company Store’s physical footprint, it may boost its visibility in terms of marketing. Home Depot has nearly 2,300 locations through which The Company Store name could be shared, locations in which customers could get that last-mile help putting the finishing touches on whatever home improvement projects they’ve undertaken.
Home sales have been a driver for sales of tools and building supplies, creating a one-stop shopping experience, and have thus helped home improvement stores weather some of the industry changes. Home Depot’s acquisition of The Company Store could be a strong preemptive move against any potential softening in home sales by keeping that momentum going.
“The acquisition of The Company Store provides product development and sourcing capabilities to help us expand our online décor business into broader categories across the entire home,” said Home Depot CEO Craig Menear in a statement.
The move could force other players such as Wayfair, Target, TJX Cos. and Amazon to up their home goods game once again.