The Home Depot is expanding its home improvement and furnishing offerings to “finish the whole room,” acquiring The Company Store, a catalog and e-Commerce retailer of home goods and textiles, from owner Hanover Direct. Terms of the transaction have not been disclosed.
“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 Craig Menear, Chairman, CEO and President of The Home Depot in a statement.
With 60% of both online and store-based sales influenced by a digital visit, the retailer continues to bolster its online offering, according to Kevin Hofmann, The Home Depot’s President of E-Commerce. During the company’s investor day, Hofmann noted that online sales at The Home Depot are 6.4% of the total — double the percentage of the retailer’s nearest competitor, most likely Lowe’s.
The Company Store primarily sells bedding- and bath-related textile products, which would complement the extensive home improvement merchandise sold at The Home Depot. The retailer is fending off competition from major retailers such as Amazon and Target in home goods sales and Wayfair, the online furniture retailer that continues to enjoy aggressive growth.
Additionally, The Home Depot doesn’t appear to be done with acquisitions. The retailer has held internal discussions in recent months about a potential acquisition bid for XPO Logistics, a $9 billion publicly traded company that offers transportation, delivery and other logistics services, according to a report from Recode.
The potential move has reportedly been spurred by Amazon’s interest in acquiring the logistics provider. When Amazon first made its big push into furniture earlier this year, the e-Commerce giant signed up XPO as a partner.
XPO manages the home delivery of heavy items such as furniture and appliances for retailers, so the company would be a logical fit for either The Home Depot or Amazon.