Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA—Responding to a difficult economy by increasing its focus on the customer, the Home Depot is aggressively expanding its store refreshment program, executives said at its second-quarter conference call.

After a successful six-store test program, Home Depot will reset over 100 bays in more than 500 (including all 40 in Atlanta) stores to improve the shopper experience. The company also is accelerating its $350-million store improvement plan, installing self checkout and adding call boxes. In addition, the chain will increase the number of associate hours to improve customer service, an unusual move in the fall.

“In a down market you have to get more aggressive to hold share,” said Bob Nardelli, chairman, president and CEO. “Clearly that is a priority in the second half.”

The chain has one factor working in the chain’s favor: As the economy tightens and housing continues to age, more shoppers will spend on household repairs, he noted.

“We believe that discretionary dollars will become repair and maintenance dollars,” Nardelli said.

The company reported second quarter net earnings of $1.86 billion, up 9.8% compared to the same period in fiscal 2005. Sales for the quarter totaled $26 billion, a 16.7% increase from the second quarter of fiscal 2005. Comparable store sales declined 0.2%, though executive vp and CFO Carol Tomé noted that comps were negatively affected by 2.1% because of the chain’s strategic cannibalization of existing stores by new units.

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

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.