Several Large U.S. Retailers Report Strong Online Sales in Second Quarter

New York, NY, August 24, 2015—Several of the largest U.S. retailers, including Home Depot, reported strong online sales in their second-quarter earnings, extending a trend that has seen e-commerce revenue expand far faster than store sales, according to the Wall Street Journal.

Home Depot’s online sales grew 25% in the second quarter year-over-year compared with 4.3% total sales growth. Online sales now represent 5% of the company’s total revenue.

Home Depot attributed a slight increase in its gross margin in the June quarter to improved logistics, including increased productivity in its distribution network and lower fuel costs.

Similarly, Target’s online sales grew by 30%, while its overall sales increased by 2.4%.

The gains come as traditional retailers are struggling to catch up with rapidly changing consumer purchasing habits and online competition.

While online shopping is often a boon to sales, it can be a drag on profits for brick-and-mortar retailers, as it requires different distribution channels than in-store sales.

In addition, brick-and-mortar retailers are experimenting with new avenues to make the shopping experience more convenient for the customer. Home Depot is offering delivery from its stores to online shoppers in four markets and will expand that dual use of stores through next year, according to its executive vice president of supply chain Mark Holifield.