The Home Depot

The Home Depot, the largest home improvement retailer in the United States, recognized the need for an innovative, efficient, and sustainable approach to their store rollouts nationwide after a decade of construction dormancy. The company sought a partnership with a firm that would not only elevate the customer experience in their stores but design and manage a rollout program tailored to save the brand money and time as it continued to grow.

Tackling Retail Expansion with Data-Driven Design

It faced the challenge of overhauling and transforming its development program to build new stores quickly and efficiently while also easing the burden on its administration staff.

Together in its new strategic partnership with MG2, which provides the brand expertise in cost management, entitlements, and full-scale program design and delivery services, the companies aimed to reduce The Home Depot’s new build construction schedule by 30%, as well as achieve a number of other goals including determining the right construction methods, implementing sustainable solutions, and appealing to communities and jurisdictions alike.

Using Data Analysis To Guide Construction Methodologies

To determine the most suitable construction method and location for The Home Depot’s new stores, MG2 conducted a series of data-driven site analyses comparing pre-engineered metal buildings (PEMBs) against concrete tilt-ups. These analyses, which took into account and outlined each option’s proven advantages and potential volatilities, revealed significant benefits in choosing Houston, TX, as its new location and supported the brand’s decision to invest in a PEMB for its warehouse.

Streamlining Designs for Efficiency and Innovation

With a data-driven road map established, designers at MG2 began by creating and validating an in-depth prototype. Through this process, the team confirmed the potential to transform and streamline The Home Depot’s development and build process. With MG2’s holistic approach, the home improvement leader has been able to remain virtually hands-off, overseeing the projects from a high-level perspective without handling the day-to-day tasks.

As the partnership continues to grow, MG2 continuously targets efficiencies to deliver a greater return on investment for The Home Depot. Beyond cost and speed-to-market optimizations, the resulting store designs offered customers a cleaner, friendlier, and lighter interior experience. Updated wayfinding and educational initiatives further empowered The Home Depot’s clientele in their home improvement endeavors.

Cost Savings and Elevated Experiences through Data-Driven Decisions

MG2’s data-driven site analyses played a crucial role in The Home Depot’s decision to invest in a pre-engineered metal building (PEMB) for their new Houston, Texas location and will continue to play an important part in determining the locations and construction methodologies of future stores. Despite initial higher material costs, the accelerated construction schedule of the PEMB warehouse led to overall savings of 0.7% to 3.2% for the year. In addition to its sustainability benefits—which appeal particularly to urban jurisdictions—the PEMB offers numerous advantages, including:

1. A faster construction schedule: 130 days, compared to 190 days for a concrete building.
2. Better insulation: An R-value of 21.6, compared to 17.3 for a concrete structure.
3. Energy cost savings: 5% to 9% over a 60-year lifecycle, depending on the region.
4. Greater quality control: Unlike concrete, PEMBs can be erected in nearly any weather.
5. Smaller environmental footprint: Less maintenance and fewer repairs over time, with a more durable metal roof.

Shaping the Future of Home Improvement Retail

Leveraging combined expertise, MG2 and The Home Depot have effectively developed innovative, efficient, and cost-conscious solutions that align with the brand’s rollout objectives. The PEMB warehouse in Houston, Texas, showcases the partnership’s achievements and underscores the importance of data-driven program design in the evolution of retail spaces.

As the collaboration continues, both companies aim to further transform the home improvement retail landscape, providing enhanced value and experiences to customers across the nation.