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The home-improvement leader gradually expands its online services

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The Home Depot (Atlanta) has taken a baby step into the e-commerce world. On Friday, it expanded its online capabilities and inventory across the United States. But the home-improvement giant prefers driving the customer into the actual store rather than generating online sales. It says it wants to avoid the disappointment and initial inventory and distribution problems many retailers have had upon making the leap to the web. But it also sees the need to retain its competitive edge on rivals such as Lowe's and Sears, who have been active on the Internet for several months.

Traditionally, the home improvement market has not been known for bringing in much revenue from Internet sales. So Home Depot has made only 40 percent of its total inventory available on the website, hoping to establish an initial interest that will be turned into shopping visits in the stores themselves. Home Depot customers in 48 states will now have some 20,000 products available to pick from online. While most items can be delivered by UPS, larger products (like windows and doors) must be picked up in a nearby store. A special section on the website entitled “My Projects” offers the customer personalized advice for any area of the home.

Home Depot plans to showcase its entire 50,000 product inventory online all over the country sometime in the near future. It is currently testing the full-scale product offering in Las Vegas and Austin and San Antonio, Texas.

Home Depot is the largest home-improvement retailer in the United States, operating over 1100 stores in the U.S., Canada, Chile and Puerto Rico.

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