Home Depot

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The Home Depot is a home improvement retailer that aims for both the do-it-yourself consumer and the professional in home improvement construction. The company operates more than 1,500 stores across North America and claims to be the largest home improvement retailer in the world. Home Depot stores are large, averaging 109,000 ft&sup2 (10,000 m&sup2) and warehouse-style, stocking a large range of supplies. The company color is a bright orange, on signs, equipment and employee aprons.

The company was founded in 1978 in Atlanta, Georgia by Bernie Marcus and Arthur Blank, and grew rapidly, sales topping $1 billion annually by 1986. As of 2002, sales are $52.8 billion annually. The Home Depot employs 300,000 people.

Company Infobox
The Home Depot logo
Company name: The Home Depot, Inc.
Company type: Public (NYSE: {{{nyse}}})
Foundation: 1978 (Atlanta, Georgia, USA)
Location: Vinings, Georgia, USA
Industry: Retail (Home Improvement)
Key people: Frank Blake, CEO & Chairman
# of employees: 355,000
Products: Home improvement products such as appliances, tools, hardware, and garden supplies & plants.
Revenue: Image:green_up.png$90.837 billion USD (2006)
Net income: Image:green_up.png$5.761 billion USD (2006)
Homepage: www.homedepot.com

The Home Depot also owns a chain of higher-end home decorating and appliance stores, EXPO Design Center, as well as a number of specialist Home Depot stores.

Since 1991 the company has become a large supporter of athletics, sponsoring the United States and Canadian Olympic teams, and launching a program to offer employment to athletes that fully allowed for their training and competition schedules. Company owner Blank also purchased the Atlanta Falcons franchise of the National Football League in February 2002.

The Home Depot has come under criticism from some environmental groups for selling old-growth rainforest lumber, including lauan, mahogany and other woods. As with other large retailers, there is also criticism that they are driving older, smaller businesses out through predatory pricing and other tactics.

The Home Depot is the largest home improvement retailer in the United States, ahead of rival Lowe's.Template:Fact

It goes on the stock symbol HD.


Contents

[edit] History

The Home Depot 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. [1] 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. [2]

[edit] The Home Depot 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 2006 sales totaled US$90.8 billion. Despite the 10% increase in revenue, it dropped three spots to #17 on the 2007 FORTUNE magazine's FORTUNE 500 list (it was #13 in 2005 and #14 in 2006). The Home Depot also owns EXPO Design Center, a chain of higher-end home decorating and appliance stores. In 2006, The Home Depot 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.[2] [3] 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.[3] [4]

[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 Salveter.

[edit] Environmental record

Home Depot has stated on their website that they have a commitment "to the environment and pledge to continue to be an industry leader in looking for products and services that are respectful of our world."[5] Home Depot has worked with environmental groups to develop a variety of green programs, like offsetting carbon emissions from its headquarters by planting thousands of trees in Atlanta.[6]

In April 2007 Home Depot announced its own label, Eco Option, for nearly 3,000 products, from fluorescent light bulbs that conserve electricity and natural insect killers, to sustainable forestry and clean water practices. The idea is that the brand name will identify the products as environmentally friendly. The initiative is expected to include 6,000 products by 2009, representing 12 percent of the chain's sales.[6]

[edit] Fox News Advertising

"Activists are urging Home Depot, which recently unveiled an environmentally conscious marketing program, to withdraw advertising from Fox News, whose hosts and commentators dismiss global warming as liberal hysteria."[7]

[edit] Republican Contributions

Seventy-three percent of Home Depot's campaign contributions went to Republican candidates in the 2005-2006 US elections. "Home Depot's PAC gives money based on a candidate's voting record, committee assignment and leadership position," said company spokesman Jerry Shields.[8] The CEO in this period was Bob Nardelli, a friend of Bush.[9] Nardelli hosted a garden reception/fundraiser for Bush at his Atlanta home on May 20, 2004[10]

Harper's magazine wrote: "The 'revolving door' is not unique to this Bush administration, but it's been spinning like a pinwheel since Bush took office. [... HomeDepot's next CEO] Francis Blake served a mere ten months as a deputy secretary for the U.S. Department of Energy before retiring from that post in March 2002. While there, he helped to craft the White House's National Energy Plan and led an interagency review of a Clean Air Act program. [...] Even before signing up with Southern [Co.], Blake had become an executive vice president at Home Depot.[11]

[edit] Labor

Despite no official documents released on Home Depot's desire to enter other countries markets, the Home Depot was rumored to invested future expansion to Europe (i.e., the United Kingdom) and East Asia (i.e., Japan), 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 2003 due to the region's economic downturn (recession), left-wing government intervention and labor union influences.

Home Depot has been reducing check-out staff in its stores through the use of self-checkout technology.

[edit] Exclusive brands

The Home Depot carries several exclusive brands, including:

[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
Home Depot storefront

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 accommodates 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. The Home Depot is also the primary sponsor of two time NASCAR Champion (2002, 2005) Joe Gibbs Racing. NASCAR driver Tony Stewart drives The Home Depot #20 Chevrolet Monte Carlo SS/Impala SS. The Home Depot is also the title sponsor of The Home Depot 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 October 2006, The Home Depot partnered with Duke University to create “The Home Depot Smart Home,” a residential laboratory where Duke students will research and develop innovative solutions for the home in areas such as security and home monitoring, communications, energy efficiency, entertainment, environment and health.[12]

In January 2007, The Home Depot became the official Home Improvement sponsor of the National Football League.[13]

[edit] The Home Depot 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

Home Depot store in Mexico City
Home Depot store in Mexico City

The Home Depot 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. Most of the Home Depot stores are located in the same installations in which the extinct Home Marts were located. 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. Template:Fact

[edit] China

In December 2006, The Home Depot announced its acquisition of the Chinese home improvement retailer The Home Way.[14] The acquisition gave The Home Depot 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.[clarify]{{#if: || }}

[edit] References

  1. ↑ Template:Cite web
  2. ↑ 2.0 2.1 Template:Cite web
  3. ↑ 3.0 3.1 Template:Cite web
  4. ↑ Template:Cite web
  5. ↑ Template:Cite web
  6. ↑ 6.0 6.1 Template:Cite web
  7. ↑ Template:Cite web
  8. ↑ Template:Cite web
  9. ↑ Template:Cite web
  10. ↑ *article that mentions Bush Nardelli Garden Reception.
  11. ↑ Template:Cite web
  12. ↑ Template:Cite web
  13. ↑ Template:Cite web
  14. ↑ Template:Cite web

[edit] External links

[edit] External links

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