• by Sarah Mahoney  @mahoney_sarah, December 8, 2017

Big-box stores get more than their share of criticism for falling behind in the omnichannel race, but the latest Digital IQ rankings from L2 show these retailers becoming specialists in their own categories, giving Amazon stiff competition.

Amazon, of course, still ranks highest, and is the only retailer to earn L2’s “Genius” designation. But by sharpening skills like personalization, store events and customer experience, 21 store brands earned L2’s “Gifted” ranking. After Amazon, the Home Depot, Walmart, Target, Best Buy are in the top five slots. Wayfair, Lowe’s, REI, (which leads the Index in terms of Instagram interaction), eBay and Staples round out the top 10.

The new report notes that part of Amazon’s dominance is its continued push into brick-and-mortar formats, including tests like Amazon Go, which still hasn’t been opened to the public,Amazon Books, and Whole Foods, as well as partnerships with stores: Both Best Buy and Target now sell some of Amazon’s products, and Kohl’s is accepting Amazon returns.

The worst performers, graded as “Feeble,” include Do It Best; Fred Meyer; HomeGoods and Marshalls, both owned by TJX Cos.; Family Dollar and Ross.

L2 says the Home Depot earns its No. 2 spot from the continued dominance of its how-to videos on YouTube and tailored bundling options on its site, as well as plenty of Q&As and product comparisons to help people with complex purchases.

At an event for investors, the Atlanta-based DIY chain just unveiled plans it hopes will help build on that digital prowess, announcing an extensive reinvestment in customer experience over the next three years. Calling the new push “One Home Depot,” it says it plans to spend more on stores and the associates who work there, interconnected customer experiences, and supply chain and delivery capabilities.

"The retail landscape is changing at unprecedented rates and we plan to invest for the future to address the evolving needs of our customers,” chairman and CEO Craig Menear says in the announcement. “We will accelerate our investments.”