Home Depot is ‘laser focused’ on elevating customer service through associates

Dive Brief:

• The Home Depot’s stores are the heart of its experience, and associates’ product and project knowledge are its key differentiator, Ann-Marie Campbell, senior executive vice president of U.S. stores and operations, said on a Q1 2025 earnings call Tuesday.
• The home improvement retailer launched a training program for associates that educates them on localized product knowledge, according to Campbell. The company is also deploying worker-facing generative AI tools to make it easier to access Home Depot’s knowledge base.
• The company aims to replicate the associate-led shopping experience online with the Magic Apron generative AI tool suite, according to Executive Vice President of Merchandising Billy Bastek. Magic Apron, which can answer customer questions, drove strong customer engagement and contributed to online conversion growth since it launched in March.

Dive Insight:

Delivering a high level of service helps Home Depot win with professional contractors and DIY customers alike, according to Campbell.

“Customers come to the Home Depot to solve their home improvement problems and build their dreams, and it is our job to consistently deliver the best interconnected shopping experience,” Campbell said during the call. “To do that, we must be laser focused on our associates and showing that we are providing the tools they need to continue to be engaged, knowledgeable and ready to serve our customers.”

The retailer’s investments in tools and technology are improving employee retention rates and employee engagement, according to Campbell. More engaged employees offer customers better service, which in turn improves customer satisfaction.

Home Depot is investing in its employees against a backdrop of macroeconomic uncertainty. The company reported 9.4% year-over-year sales growth to $39.9 billion in the first quarter of 2025, according to an earnings report. Global comparable sales were down 0.3% year over year, though U.S. comparable sales rose 0.2%.

Online sales were a bright spot for Home Depot. Sales through digital platforms were up 8% year over year, driven by investments in interconnected shopping experiences and faster delivery time, according to Bastek.

“Those customers benefiting from faster delivery are engaging more and spending more with us across our categories,” Bastek said.

Home Depot will continue leaning into speed as a differentiator for the professional contractor experience, according to President and CEO Ted Decker. The company plans to complete an order management system upgrade by the end of the year that is expected to improve the number of on-time deliveries for pro customers.