What Home Depot is planning

Home Depot is planning to increase sales by nine to twelve per cent over the coming 2004/2005 financial year. Sales are expected to rise by between three and six per cent in like-for-like terms. These are some of the figures mentioned at a recent analysts’ conference. For the current financial year to 2 February 2004, Home Depot expects a sales increase of eleven per cent overall and 3.8 per cent like-for-like.
According to information from the company, it intends to open 175 new DIY stores in the coming financial year. There are plans for 14 new openings in Canada and nine in Mexico. The overall volume of investment in new outlets, store renovations and new technology is estimated at US $ 3.7 bn (€ 3.0 bn). Bob Nardelli, chairman, president and chief executive officer, is building up his strategy for growth not only on the group’s traditional retail business, however. At the conference he expressly named the company’s installation services, tool hire, e-commerce, the HD Supply professional channel and dealing with government contracts as well.
The figures break down as follows:
2002
2004*
Core US retail**
90.7 %
88.0 %
International retail***
4.4 %
5.4 %
Services****
2.9 %
3.8 %
HD Supply
2.0 %
2.8 %
* Expected. ** Includes US Home Depot and Expo. *** Canada and Mexico. **** In store labor only