Home Depot Doubles Down on Physical Stores as AI Makes Them 'More Relevant'

Home Depot Doubles Down on Physical Stores as AI Makes Them ‘More Relevant’

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3.29.2026

Quick Facts

Home Depot expanded Magic Apron AI suite in January 2026 with new agentic tools developed with Google Cloud
Company reported $39.9 billion in Q1 2026 revenue, up 9.4% year-over-year, with 0.2% comparable sales growth
New AI store experience provides aisle-level precision for product location using real-time local inventory data

Home Depot executives say artificial intelligence makes physical stores more valuable, not less. The retailer is betting that AI-powered tools will drive customers to visit locations rather than shop online.

“Twenty-five years ago, the conversation was, ‘Is the store going to be relevant in an age of e-commerce?’” said Jordan Broggi, executive vice president of customer experience. “But now in the age of AI and agentic commerce, the store has never been more relevant than it is today.”

The company expanded its Magic Apron AI suite in January 2026 through a partnership with Google Cloud. The tools evolved from simple product page assistants into conversational digital companions for DIY customers and professionals.

Home Depot built new store experiences into Magic Apron that integrate AI with real-time local inventory and product locations. The system provides aisle-level precision, directing customers to exact product locations within stores.

“It’s creating the experience that works for a variety of different customers, across a variety of different journeys, and meeting them in the moment for what they need,” said Angie Brown, chief information officer.

The retailer operates 2,356 stores and over 1,200 SRS locations across all 50 states. It employs more than 470,000 associates and runs over 175 AI and machine learning projects. About 80% of its software is built in-house.

Home Depot reported $39.9 billion in revenue for the first quarter of fiscal 2026, a 9.4% increase from the previous year. U.S. comparable sales rose 0.2%. Digital Commerce 360 projects the company’s online sales will reach $26.57 billion in 2025.

The company ranked first in Similarweb’s “Home and Garden” category, attracting 1.2 million referrals from AI sources in June. ChatGPT alone generated 1.0 million referrals.

Home Depot’s AI strategy relies on proprietary data spanning over 15 petabytes focused on home improvement projects. The company partnered with Google Cloud rather than Amazon’s AWS to avoid potential conflicts with the e-commerce giant.

“Customers want to be helped, and they want to be helped in the right moment by the right tool,” Broggi said. “And if that’s a human, that’s a human.”

The retailer is testing the enhanced in-store AI experience at select stores before a nationwide rollout in coming months. The company aims to integrate physical and digital shopping through its “One Home Depot” strategy.