Home Depot gears up for international growth
Sales up 12.5 per cent across the year
Home Depot plans to open 175 stores during 2005 as it gears up for entry into China.
The world’s biggest DIY retailer is forecasting 2005 sales growth of between 9 and 12 per cent. In addition to the new stores in the US and beyond, with 19 stores planned for Canada and 10 for Mexico as well plans for entry into China.
Home Depot will invest 3.7bn in store modernisation and technology. The company is forecasting comparable store sales growth of 4 to 7 per cent.
For the current year, to the end of January, the company expects sales growth of 12.5 per cent to $72.9bn, with same store sales up around 5 per cent.
Bob Nardelli, chairman, president & CEO, said: “We are clearly on track with the transformation of the company and our strategy of building multiple business platforms for solid, sustainable growth well into the future.
“Our strong financial performance is enabling us to build upon our leading position across a number of professional businesses and other adjacent markets. We are staying on our strategy of enhancing the core, extending the business and expanding the market.”
John Costello, executive vice president, merchandising and marketing, confirmed that Home Depot has formed a partnership with LG Electronics to expand its line of home appliances.
Costello said: “This exciting addition to our product line includes laundry systems, refrigerators, dishwashers, air conditioners, and microwave ovens, among others. Our expanded assortment of distinctive and innovative new products will meet customer needs, build differentiation, and drive revenue and average ticket.”
Frank Blake, executive vice president, Business Development, announced the roll-out of its Special Order Services Initiative (SOSI), a new technology platform that will provide a link among customer, associate and installer to streamline project management for installations. SOSI is scheduled to be rolled out in late 2005. Blake said: “With over 11,000 installations per day, The Home Depot is emerging as a major force through Installation Services, and we expect to continue our double-digit growth into 2005.”
