Home Depot Inc

 Home Depot Inc Essay

HOME DEPOT, INC.

inside the New Centuries

Tom Thomson, Suzanne Mum, Todd Humphrey, Owen Clements

June twenty eight, 2006

Goal

Background/History

 Current circumstance

 Accounting and Finances

 Progress Initiatives

 Financial Analysis

 Prediction

RESIDENCE DEPOT Inc.

Founded In 1978 in Atl, Georgia

Major Retailer of home improvement products

Stores had been warehouses and sold huge volumes

of goods at low prices

Offered ‘how-to-clinics' and knowledgeable

customer service reps

Between the Show up of 81 & End of 99, stock

value had increased at a compound annual rate of

29%

Uninterrupted growth in US economy since 1992

Competitors

Lowe's was second largest diy

retailer

Remarkably fragmented market

Menards and Homebase – smaller yet

concentrated in most geographic areas

Hechinger was main competition initially in an

make an effort to copy House Depot's warehouse style

stores, went out of business

Management Style

Continuously evolving

 Evaluate new ideas upon smaller level

before taking to complete store network

 Shops were positioned in all US states and

Canadian provinces 2/3rd of retailers opened

in existing markets

Current Situation

August 12th, 2150 the company declared

lower after that expected income for the 3rd and fourth

quarter

Greatest one day drop (28%) to $35, a $33 billion

loss in market increased

Drop considered to be due to delaying economy,

overvaluation of stock price or perhaps problems with the

company's upcoming strategic course

Economy experienced experienced uninterrupted growth

since 1992

Trivia Time with Todd!

What percentage of the planet's countries

a new GDP in 2004 less than $33 billion

according to the globe bank?

 2/3

 1/3

 1/2

 5/8

 11/16

Accounting Policies

Stage of Sale revenue recognition

 Price as distributed

 Everlasting inventory program

 Nothing at all interesting or perhaps exciting

 " Almost everything is Kosher” - Mary

Progress Initiatives Classroom Opinions

Get it Yourself customers

 Professional customers

 Shop format improvements

 Product category development

 Foreign growth

 Internet revenue

Development Initiatives Buy-it-Yourself Customers

Choose Products nevertheless Installed by Third-Party

six, 200 thirdparty contractors

The aging process demographics

Marketplace for set up services approximated at

$75 billion

Lower than 2% from the installation industry

Grow simply by 40% annually for the next five

years

Expansion Initiatives Specialist Customers

Huge Market potential

 ‘Job Lot' amounts

 Different needs for different customers

 Effect of specialist customers about DIY

 Anticipated to affect sales one of the most out

of all the initiatives

 More cyclical then DO IT YOURSELF business

Growth Initiatives Store Forms

Extending in specialty outlets

 Very high end product range

 Required retainer fee

 Sales objective for each client ($10, 000)

 Examining smaller retailers to contend

more straight with House Hardware and so forth

Progress Initiatives Product Categories

Increasing product lines

 Adding kitchen appliances to complement current

offerings

 Vertically integrate supply chain

 Tool rentals and truck renting

Expansion Initiatives Worldwide Growth

Development into South America

 Joint venture in Republic of chile

 Looking at expansion into the Far East

Growth Endeavours Internet Product sales

Information hub for customers

 Adding e-commerce abilities

 Intended to match brick stores

Talk Time with Tom!

Tiny groups

 10 minutes

 Evaluate every single initiative independently

 Statement back to all of us

Expansion Initiatives Buy-it-Yourself Customers

Good opportunity!

 Service will be key in this segment

Growth Projects Professional Buyers

Another opportunity!

 Largest and most profitable market

 Complement towards the existing business

Growth Pursuits Store Formats

Bad thought!

 Diverse business plan

...