Picture yourself in the middle of a home improvement project and in need of additional nails or lumber. Home improvement retail giant Home Depot is well aware of customers and do-it-yourselfers who find themselves in this situation. The Internet has changed the way customers shop, and with the tap of a smart phone, those nails and lumber are ready for immediate store pickup.

As the retail industry has become more interconnected, Home Depot has benefited from its multichannel approach to the customer experience. The company continues to leverage its digital platform and technology to support customers shopping in its stores as well as online. Sales associates have been trained on the company's webenabled handheld device that allows for quick checks on inventory levels, how-to videos, product research, and the ability to complete a sales transaction in the middle of a store aisle.

While still a traditional bricks-and-mortar retailer, Home Depot has fine-tuned its retail network to accommodate four interconnected options for shoppers: buy online, ship to store (BOSS); buy online, pick up in store (BOPIS); buy online, return in store (BORIS); and its newest—buy online, deliver from store (BODFS). Approximately 40% of Home Depot's online orders are filled through its 2,200 retail stores, which double as fulfillment centers.

Although initially reluctant to embrace the web and its technology, in a recent year Home Depot's online sales grew 21% and represent almost 7% of annual sales of $100 billion. Home Depot has invested over $300 million to upgrade its e-commerce offerings, with a focus on distribution capability, supply-chain management, and full integration of web and store inventory. In addition to two fulfillment centers in Georgia and California, the company has added a third in Ohio, and warehouse technology systems have been updated. Home Depot is counting on a continued housing market recovery as well as the inevitability that customers and contractors will continue to run short of lumber and nails in the midst of that all-important home improvement project.

Questions for Critical Thinking

1. As more retailers embrace an interconnected retail strategy, discuss your experience as a consumer with how retailers are bridging the gap between physical stores and the online world.

2. How can Home Depot ensure that its online fulfillment strategy keeps the retail chain competitive?