After a successful six-store test program, Home Depot will resetover 100 bays in more than 500 (including all 40 in Atlanta) storesto improve the shopper experience. The company also is acceleratingits $350-million store improvement plan, installing self checkoutand adding call boxes. In addition, the chain will increase thenumber of associate hours to improve customer service, an unusualmove in the fall.

"In a down market you have to get more aggressive to holdshare," said Bob Nardelli, chairman, president and CEO. "Clearlythat is a priority in the second half."

The chain has one factor working in the chain's favor: As theeconomy tightens and housing continues to age, more shoppers willspend on household repairs, he noted.

"We believe that discretionary dollars will become repair andmaintenance dollars," Nardelli said.

The company reported second quarter net earnings of $1.86billion, up 9.8% compared to the same period in fiscal 2005. Salesfor the quarter totaled $26 billion, a 16.7% increase from thesecond quarter of fiscal 2005. Comparable store sales declined0.2%, though executive vp and CFO Carol Tomé noted that comps werenegatively affected by 2.1% because of the chain's strategiccannibalization of existing stores by new units.

During the quarter, the company 30 new stores, including tworelocations, with two new stores in Canada and one new store inMexico, bringing the total store count to 2,079.