Atlanta, GA, June 15--Home Depot, according to the Atlanta Journal-Constitution, has doubled its online selections to nearly 24,000 items in the past year and expanded its home furnishings offerings to include brightly colored "Sedona" dinnerware by Pfaltzgraff, outdoor pool/pingpong tables, leather lounge chairs and wireless flat-panel televisions.
The newspaper quoted Shelley Nandkeolyar, president of Home Depot direct brands, as saying that the chain already sells patio furniture but thinks online customers want furnishings to go with it.
"Consumers may not traditionally look to us for that," said Nandkeolyar. "But customers want the whole look."
Many of the newer items are decidedly high-end. The convertible pool/pingpong table, for instance, goes for $5,500. A leather chair-and-ottoman combo is $1,000, and a Sharp Aquos wireless flat-panel TV fetches $1,700.
The Web site is even peddling 12-by-20-foot, $10,000 knotty red pine timber buildings that look like small log cabins and double as "weekend retreats" with "quick assembly."
Most of the new items are not sold in stores, only online or through a catalog mailed to a limited audience. In some cases, the Web site is merely an online sales window for a manufacturer.
"Some items are direct-shipped from the manufacturers, while others are shipped from our distribution centers," Nandkeolyar said.
As Home Depot evolves and tries to attract a broader cross-section of shoppers, especially women, the chain is finding new ways to broaden its appeal and even soften its hard edges by selling things including 15-foot quick-set pools for $129 and erupting volcano island pool floats for $80. It's also selling twin-size beds for teens with changeable powder blue, pink, mint, orange or green drawers for $500.
"We noticed that Home Depot is carrying a greater home furnishings assortment online, including children's furniture and china," said analyst Colin McGranahan with Bernstein & Co. "This seems a bit curious. I would imagine they're just distributing it; otherwise, I don't know how they're doing it."
Home Depot's strategy differs from that of rival Lowe's, which does not sell a deep assortment of home furnishings.
Lowe's spokeswoman Julie Yenichek said the company sells all 25,000 of its online items in stores so customers can go pick them up if they want to.
She added that the company relaunched its Web site in April and began selling lumber online.
"Convenience is the name of the game," Yenichek said. "Consumers are spending more time online than reading books, magazines or going to the movies combined. Our site continues to expand, and new products are added all the time."
Nearly two years ago, Home Depot lagged behind Lowe's in online visitors. But Home Depot took the lead by fall 2003, after it relaunched its Web site and later added an online wedding gift registry.
Home Depot has maintained its lead. In April, it logged nearly 9 million unique visitors to its Web site, up from 5.6 million last year, according to comScore Media Metrix. By comparison, 6.7 million people visited Lowe's, up from 4.3 million.
"It's a low-overhead strategy to sell some of their product," said analyst Nathan Lewis, of Jackson Securities in Atlanta.
"More companies are utilizing the Web to find different revenue channels, and it adds value to Home Depot."
