Part
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Part
01
Home Depot and Costco
Home Depot and Costco had online sales of $8.55 billion and $5.54 billion, while their in-store sales were $99.65 billion and $132.9 billion in 2018, respectively. Homedepot.com had 131.5 million visits in October 2019, while at the same time Costco.com had 53.7 million visits.
Home Depot
- Home Depot operates in the United States, Puerto Rico, U.S. Virgin Islands, Canada, and Mexico
- The total in-store sales for all regions were $99.65 billion in 2018. (calculated)
- The total online sales for all regions were 7.9% of the total net sales, which equals to $8.55 billion (calculated).
- Homedepot.com had 131.5 million visits in October 2019, while the average online traffic from May 2019 to October 2019 was 147.25 million visits (calculated).
- The average visit duration for the Homedepot.com website is 4 minutes and 44 seconds.
- The largest portion of the online traffic is from the United States and makes 95.34% of all traffic to the website.
Costco
- Costco operates worldwide and has warehouses in the United States, Puerto Rico, Canada, Mexico, United Kingdom, Japan, Korea, Taiwan, Australia, Spain, Iceland, and France.
- The total in-store sales for all regions were $132.9 billion in 2018. (calculated)
- Costco has e-commerce websites in the United States, Canada, Mexico, United Kingdom, Taiwan and Korea.
- The online sales for all regions are estimated to be around 4% of the total net sales, which equals to $5.54 billion in 2018. (calculated)
- Costco.com had 53.7 million visits in October 2019, while the average online traffic from May 2019 to October 2019 was 54.08 million visits (calculated).
- The average visit duration for the Costco.com website is 4 minutes and 24 seconds.
- The largest portion of the online traffic is from the United States and makes 97.02% of all traffic to the website.
Research Strategy
We searched the Home Depot and Costco websites, including press releases, financial statements, and annual reports. We found that these companies only publish information about their net sales and comparable sales. However, we identified the percentage that online sales have in net sales for both companies, so we used it to triangulate the value of online sales and then calculated the in-store sales by subtracting the online sales from the net sales. In order to identify the online traffic for the Home Depot and Costco websites, we used a web analytics website Similarweb to find out the number of visits and then used data from the past six months to calculate the average online traffic. Please note that Home Depot and Costco both have separate websites for different regions, so we decided to use Homedepot.com and Costco.com sites, which are mostly used by people in the United States. An overview of our calculations is presented below.
Calculations
Home Depot online sales
We used the following formula:
Home Depot online sales = Home Depot net sales * Home Depot online sales percentage
Home Depot online sales = $8,548,037,000
Home Depot in-store sales
We used the following formula:
Home Depot in-store sales = Home Depot net sales - Home Depot online sales
Home Depot in-store sales = $99,654,963,000
Home Depot average online traffic
We used the following formula:
Home Depot average online traffic = (May 2019 traffic + June 2019 traffic + July 2019 traffic + August 2019 traffic + September 2019 traffic + October 2019 traffic) / 6
Home Depot average online traffic = (164,500,000 + 162,500,000 + 155,500,000 + 139,000,000 + 130,500,000 + 131,500,000) / 6
Home Depot average online traffic = 883,500,000 / 6
Home Depot average online traffic = 147,250,000
Costco online sales
We used the following formula:
Costco online sales = Costco net sales * Costco online sales percentage
Costco online sales = $5,537,360,000
Costco in-store sales
We used the following formula:
Costco in-store sales = Costco net sales - Costco online sales
Costco in-store sales = $132,896,640,000
Costco average online traffic
We used the following formula:
Costco average online traffic = (May 2019 traffic + June 2019 traffic + July 2019 traffic + August 2019 traffic + September 2019 traffic + October 2019 traffic) / 6
Costco average online traffic = (54,500,000 + 53,500,000 + 58,000,000 + 54,700,000 + 50,100,000 + 53,700,000) / 6
Costco average online traffic = 324,500,000 / 6
Costco average online traffic = 54,083,333