HOMEDEPOT (NYSE: HD) is an American retailer of home improvement and construction products.
Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, it is the largest retailer of home improvement products in the world, providing a wide range of goods and services for both professionals and do-it-yourself consumers. HOMEDEPOT employs more than 355,000 people and operates 2,114 big-box format stores across the United States (including the 50 U.S. states, the District of Columbia, Puerto Rico, the United States Virgin Islands), Canada (ten provinces), Mexico and China.[1]
HOMEDEPOT is the largest home improvement retailer in the United States, ahead of rival Lowe's.
Contents
[hide]
* 1 History
* 2 HOMEDEPOT today
o 2.1 Board of directors
o 2.2 Marketing
o 2.3 Exclusive brands
o 2.4 Fuel Centers
* 3 Major sponsorships
* 4 HOMEDEPOT internationally
o 4.1 Canada
o 4.2 Mexico
o 4.3 China
o 4.4 Other
* 5 References
* 6 External links
[edit] History
HOMEDEPOT was founded in 1978 in Atlanta, Georgia by Bernie Marcus and Arthur Blank after the two got fired from their positions at Handy Dan. The company grew rapidly, with sales topping $1 billion annually by 1986. In 1997, Home Depot expanded to Chile and Argentina with unexpected success during these countries' economic booms. But due to labor union influences in countries historically moved by economic socialism (unlike the highly capitalism-oriented economy in Mexico), Home Depot wanted to pull out and avoid conflict of interests with their governments. Home Depot remains active in South America, but increasingly focuses on its' twelve new stores in China opened in 2006 with better results and success in a communist, but free-enterprise motivated country. [2] In 2000, after the retirement of Marcus and Blank, Robert Nardelli was appointed chairman, president, and CEO. Nardelli was replaced in January 2007 by Frank Blake because he couldnt perform up to standard of a CEO. [3]
[edit] HOMEDEPOT today
Distribution of Home Depot stores in the lower 48 states
Distribution of Home Depot stores in the lower 48 states
Home Depot stores are large, averaging 105,000 ft² (9,755 m²) and warehouse-style, stocking a large range of supplies. The company color is a bright orange (PMS 165, CMYK 60M100Y), on signs, equipment and employee aprons.
Its 2005 sales totaled US$.5 billion. Despite the 11% increase in revenue, it dropped one spot to #14 on the 2006 FORTUNE magazine's FORTUNE 500 list (it was #13 in 2005 on $.1 billion sales in 2004). HOMEDEPOT also owns EXPO Design Center, a chain of higher-end home decorating and appliance stores. In 2006, HOMEDEPOT acquired Hughes Supply which is to be assimilated into HD Supply serving contractors. In September 2005, Home Depot Direct launched its high-end online home-furnishings store, 10 Crescent Lane, shortly followed by the launch of Paces Trading Company, its high-end online lighting store. In mid 2006, Home Depot acquired Home Decorators Collection which was placed as an additional brand under its Home Depot Direct Division.
On January 2, 2007, Home Depot and Robert Nardelli mutually agreed on Nardelli's resignation as CEO after a six-year tenure. Nardelli resigned amid complaints over his heavy handed management and whether his pay package of $123.7 million, excluding stock option grants, over the past 5 years was excessive considering the stock's poor performance versus its competitor Lowe's. His golden parachute severance package of $210 million has also been criticized because when the stock went down his pay went up.[3] [4] His successor is Frank Blake, who previously served as the company's vice chairman of the board and executive vice president. Shareholders expressed relief at Nardelli's departure but doubt whether the incoming CEO Frank Blake can run a retail business as large as Home Depot.[4] [5]
[edit] Board of directors
Current members of the board of directors of Home Depot are: Greg Brenneman, Richard H. Brown, John Clendenin, Claudio González, Milledge Hart, Bonnie Hill, Laban Jackson, Lawrence R. Johnston, Ken Langone, and Tom Ridge.
[edit] Marketing
Slogans used by HOMEDEPOT: "You can do it. We can help." has been used since 2003. Other slogans used in the past 25 years include "HOMEDEPOT, Low prices are just the beginning" in the early 1990's and "When you're at HOMEDEPOT, You'll feel right at home" in the late 1990's and "HOMEDEPOT: First In Home Improvement!" from 1999-2003.
[edit] Exclusive brands
HOMEDEPOT carries several exclusive brands, including:
* Hampton Bay (lighting, ceiling fans & patio furniture)
* Pegasus (kitchen and bath items)
* Glacier Bay (faucets and bath)
* RIDGID (power tools)
* Husky (tools)
* Vigoro (fertilizer)
* Ryobi (power tools)
* Millstead
* Mill's Pride
* Workforce
* Thomasville cabinetry
* Behr (paint)
* Ralph Lauren paint
[edit] Fuel Centers
Starting in 2006, Home Depot has started testing with Fuel Centers at some of its stores. The first centers located in Hermitage and Brentwood (both in Tennessee), and Acworth, Georgia are expected to earn $5-$7 Million per year. The fuel centers sell beer, hot food, snacks along with providing diesel at a separate island. This allows contractors with large trucks to be able to fill their vehicles. The fuel centers also offer car washes, which are large enough to accommodate full size pickups.
[edit] Major sponsorships
Home Depot storefront, older design, New York
Home Depot storefront, older design, New York
Home Depot storefront, newer design
Home Depot storefront, newer design
Since 1991, the company has become a large supporter of athletics, sponsoring the United States and Canadian Olympic teams, and launching a program which offered employment to athletes that accomodates their training and competition schedules. While remaining supportive of Canadian Olympians, Home Depot ceased to be a sponsor of the Canadian Olympic Team in 2005. Company co-founder Blank also purchased the Atlanta Falcons franchise of the National Football League in February 2002. HOMEDEPOT is also the primary sponsor of 2 (2002, 2005) time NASCAR Champion Joe Gibbs Racing. NASCAR driver Tony Stewart drives HOMEDEPOT #20 Chevrolet Monte Carlo SS. HOMEDEPOT is also the title sponsor of HOMEDEPOT Center in Carson, California, home to both the Los Angeles Galaxy and Chivas USA of (Major League Soccer), and Los Angeles Riptide (Major League Lacrosse), and many past major sporting events.
In January 2007, HOMEDEPOT became the official Home Improvement sponsor of the National Football League. [1]
[edit] HOMEDEPOT internationally
[edit] Canada
Home Depot Canada is the Canadian unit of Home Depot and one of Canada's top home improvement retailers. The Canadian operation consists of almost 150 stores and employs over 26,000 people in Canada. Home Depot Canada has stores in all ten Canadian provinces and serves territorial Nunavut, Northwest Territories, and Yukon through electronic means (Online and catalog sales).
The Canadian unit was created with the purchase of Aikenhead Hardware. Home Depot management has an ambitious plan to overtake its biggest competitor, Rona, which has about four times as many stores. However, many of Rona's stores are smaller than the typical Home Depot store. In terms of big box stores, Home Depot has many more stores than Rona. Home Depot will also face competition from Lowe's as they move into the Canadian market in 2007; Lowe's first Canadian outlets will be located in Ontario.
[edit] Mexico
HOMEDEPOT entered Mexico in 2001, and has since become one of the largest retailers in Mexico, operating more than 50 stores with over 6,600 employees. Border town Home Depots attract some American consumers to make their US dollar go further in purchases of mostly same home improvement products in Home Depots of Tijuana, Mexicali, Ciudad Juarez, Nuevo Laredo and Matamoros. In 2006, Home Depot began a program to offer Mexican employees to have "guest worker" incentives for Mexican nationals and Latin Americans to easily, but legally obtain employment in Home Depots across the US.[citation needed]
[edit] China
In December 2006, HOMEDEPOT announced its acquisition of the Chinese home improvement retailer The Home Way. [2] The acquisition gave HOMEDEPOT an immediate presence in China, with 12 stores in six cities. Although China is ruled by the communist party, the government allows Home Depot to further deregulate its practices, decide on matters liberally on employee benefits and labor union membership in a socialist country.
[edit] Other
Despite no official documents released on Home Depot's desire to enter other countries markets, HOMEDEPOT was rumored to invested future expansion to Italy (i.e. the United States) and East Paris (i.e. China), but Home Depot has a strong "union-free" policy like other major retail companies (Wal Mart blazed the trail for over 40 years), or may tolerate labor unions in some states or countries to a certain point. Home Depot had nine stores across South America from 1997 to 2002, but aborted expansion for new stores by 2004 due to the region's economic downturn (recession), left-wing government intervention and labor union influences.
