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Public ()
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"You Can Do It We Can Help"
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1978 ( Atlanta, Georgia , USA )
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Vinings, Georgia , USA
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Frank Blake , CEO & Chairman
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Retail (Home Improvement)
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355,000
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Home improvement products such as Appliance s, Tool s, Hardware ,lumber, building materials, paint, plumbing, flooring and Garden Supplies & Plants
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$90837 billion USD ( 2006 )
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$5761 billion USD ( 2006 )
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wwwhomedepotcom
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() is an
American Retailer of
Home Improvement and
Construction products and services.
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http://irhomedepotcom/releasedetailcfmreleaseid=219054
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The Home Depot
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News Releases
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November 17, 2006
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The Home Depot is the largest home improvement retailer in the United States, ahead of rival
Lowe's , and the second-largest general retailer in the United States, behind only
Wal-Mart .
Top 100 Retailers: The Nation's Retail Power Players (PDF) , ''Stores'', July 2006.
While working with Handy Dan hardware stores, Bernie Marcus (division president), Arthur Blank( CFO), and Ron Brill were at odds with the CEO of the parent company, Sandy Sigoloff. Sigoloff ran Daylon corporation, which in turn owned Handy Dan. Marcus thought that because Handy Dan was the only division that was profitable, Sigoloff would not do without him. Around this time, a friend of Marcus and a Park Avenue investment banker, Ken Langone, bought 19% of the public shares in Handy Dan. Sigoloff, resenting any outside influence in his company,despised Langone. Knowing Langone and Marcus were friends, Sigoloff place enormous pressure on Marcus, which made his working life exceptionally difficult.Bernie Marcus and Arthur Blank with Bob Andelman, ''Built from Scratch: How a Couple of Regular Guys Grew The Home Depot from Nothing to $30 Billion''p.30 (New York: Times Books, 1999). Sometime in 1977, while in Houston, Marcus, through his trust in their friendship, had confided in both Ken Langone and Blank about an idea he had for a type of hardware store-he just did not give any details, simply claiming it would make Handy Dan stores obsolete.
Marcus, Blank, and Brill suffered under Sigoloff more than ever by 1978. Marcus urged Langone to sell his shares of Handy Dan stock, believing this would appease Sigoloff, which in turn would ease the pressure on Marcus. Despite warnings from Langone, Bernie insisted he sell the shares. Once done, Sigoloff prepared himself to not just terminate Marcus and co., but to completely ruin their careers, their finances, and devastate them emotionally. That was Sigoloff's (Ming the Merciless as he thought of himself)Bernie Marcus and Arthur Blank with Bob Andelman, ''Built from Scratch: How a Couple of Regular Guys Grew The Home Depot from Nothing to $30 Billion''p20 (New York: Times Books, 1999). way-to totally affect someone's life, so that anyone would think twice about betraying him. Sigoloff planned the termination of Marcus, Blank, and Brill with attorneys and released them on April 14, 1978. Subsequently, Marcus and Blank were despondent about their unemployment. Ken, being the good friend, responded to the news by saying to Marcus over the phone:
The Home Depot was founded in
1978 in
Atlanta, Georgia by
Bernie Marcus ,
Arthur Blank ,
Ron Brill , and
Pat Farrah . The men envisioned a chain of home-improvement warehouses, larger than any of their competitors' facilities, filled with a vast array of products stacked from the floor to the 20ft ceiling and staffed by customer-service experts. With valuable contributions investment banker Ken Langone, they secured sufficient capital and searched nationwide for a suitable location to found their company. Marcus and Blank opened two stores on June 22, 1979, in Atlanta, which made the city the official home of the Home Depot.
The stores were a definite success after a fateful purchase decision by Pat Farrah. He had purchased 3000 fireplace screens far below wholesale cost ($33.00), and proposed to sell it at $35.00 per screen, (the normal retail price was $179.00). Although Bernie was furious, and scoffed at the purchase at first, figuring Pat had just killed the company because he just committed $100,000 that the company desperately needed. Marcus eventually agreed to sell it. The next week, the item was advertised and caused a rousing response. The sold every unit within 4 days. This one purchase set the companies sales ablaze.Bernie Marcus and Arthur Blank with Bob Andelman, ''Built from Scratch: How a Couple of Regular Guys Grew The Home Depot from Nothing to $30 Billion''p.86 (New York: Times Books, 1999).
The retail philosophy of a "three legged stool", according to its founders, is Home Depot’s main source of competitive advantage. The stool with three legs, an inherently stable and strong structure, represents: 1) providing consumers with the best selection; 2)guaranteed lowest price; 3) and the best customer service.(Marcus and Blank 1999) In addition to the three legged stool retail philosophy, Marcus and Blank also strongly believe in "the upside down pyramid", a graphical way to depict their belief on where they sat in the importance of the companies structure. For example, a right side up pyramid would suggest that the workers importance to the company is at the bottom, with the one director at the top. Their philosophy was just the opposite: they believed the most important person working for the company were the associates in the stores-not in the corporate office. This led to an astounding cultural phenomenon within Home Depot- it enabled a powerful entrepreneurial spirit among all associates, from lot loaders and cashiers to the corporate offices. This "upside down pyramid" focus created such a strong, cult-like culture, within which the employees took it upon themselves to defend customers against Home Depot.
The "Home Depot has never sold, and never will sell, automobile tires", said Marcus in a 1999 interview.
But, early in the companies history, a customer brought into one of the first stores 4 automobile tires and demanded a refund. The returns counter associate called Larry Mercer for help. Mercer arrived up front, then asked the gentleman how much he paid for them. After the customer threw out a number, Mercer reached into the register and returned that amount to the customer without another word. To make the point painfully clear to his company of what he demanded of them to earn the customers loyalty, he hung all four tires from the ceiling above the return desk, daring anyone to deny any customer a refund.Bernie Marcus and Arthur Blank with Bob Andelman, ''Built from Scratch: How a Couple of Regular Guys Grew The Home Depot from Nothing to $30 Billion'' p.144 (New York: Times Books, 1999). The "No hassle return policy" was: with or without a receipt, even if Home depot did not carry the item the customer was returning, Home Depot would refund your money--no gimmicks, no tricks. This is but one example how Home Depot associates earned absolute loyalty among Home Depots customers. There are literally thousands of examples of associates going above and beyond customer expectations, going so far to actually "shock" people with the level of service received. This type of ownership in taking care of ''their'' customers is the very reason why associates, from bottom to top, declared proudly that they "bleed orange".Roush, Chris "Inside Home Depot" McGraw Hill
Home Depot stores were staffed by knowledgeable professionals in various trades who were able to assist the novice in home improvement. The goal was "if you teach them how to do it, and they are successful, then they will keep coming back for every project after that."Roush, Chris "Inside Home Depot" McGraw Hill Every Home Depot associate underwent extensive and continuous training in product knowledge and customer-service skills. To further assist the do-it-yourself customer, and to bolster sales, the Home Depot stores also provided home-improvement training seminars to the public free of charge.
Realizing fantastic sales and returns on investment of goods, Arthur Blank and Marcus and Blank initiated an aggressive yet well-planned expansion program. By 2003 the Home Depot had grown from three stores employing 200 people to more than 1,700 stores employing 300,000 people. Today, a new store opens every 43 hours, and more than 22 million customers visit a Home Depot store each week. The Home Depot's growth is unparalleled in the business community. It was the youngest company to reach $30 billion, $40 billion, $50 billion, and then $60 billion (in 2004) in sales. Critics of the company's meteoric success contend that the Home Depot's aggressive expansion policy unfairly drives smaller, preexisting competitors out of business and creates a monopoly in some markets. Despite such criticism, the company's plans call for continued expansion, especially now the Lowes Home Improvement stores are offering Home Depot adequate competition in every major market in the U.S.
Using a unique business model Marcus had envisioned while still at Handy Dan, the company grew rapidly, with sales topping $1 billion annually by
1986 . The Home Depot revolutionized the home-improvement industry by offering a wide selection of merchandise, low prices, and exemplary customer service to both the professional contractor and the do-it-yourself customer. Before the advent of Home Depot, small mom-and-pop stores, carrying a limited and specific selection of merchandise, dominated the industry and typically emphasized sales to the professional contractor. As a result, home-improvement projects often required driving to several stores to obtain the necessary materials. By contrast, the Home Depot stores offer a one-stop shopping warehouse. The average Home Depot store is approximately 130,000 square feet and is stocked from floor to ceiling with some 40,000-50,000 different products. An emphasis on size and volume allows the Home Depot to remain profitable by selling more for less. This, in turn, allows the Home Depot to negotiate lower prices from the merchandise vendors, with the savings passed on to the consumer.
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http://wwwforbescom/2002/03/21/0321homedepothtml
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Forbescom
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Home Depot Finds The World A Small Place
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March 21, 2002
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http://irhomedepotcom/ReleaseDetailcfmReleaseID=224078
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The Home Depot
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News Releases
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January 3, 2007
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Home Depot stores are large, averaging 105,000 ft&
2 (9,755 m&
2) 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 , 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.
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http://wwwbusinessweekcom/bwdaily/dnflash/content/jan2007/db20070103_536329htm
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Business Week
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Home Depot's Surprising Choice for CEO
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January 4, 2007
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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.
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http://wwwforbescom/markets/2007/01/03/hd-nardelli-update-markets-equity-cx_rs_0103hdhtml
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Forbescom
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Nardelli Bails On Home Depot
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January 3, 2007
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http://irhomedepotcom/governance/ethicscfm
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Home Depot
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Business Code of Conduct and Ethics
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http://wwwstopglobalwarmingorg/sgw_readaspid=347104172007
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stopglobalwarmingorg
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Home Depot to Display an Environmental Label
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April 17, 2007
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http://wwwstopglobalwarmingorg/sgw_readaspid=347104172007
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stopglobalwarmingorg
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Home Depot to Display an Environmental Label
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April 17, 2007
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http://wwwprattdukeedu/news/id=794
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Duke University
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Duke Announces Construction of “The Home Depot Smart Home”
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October 24, 2006
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http://irhomedepotcom/releasedetailcfmreleaseid=224939
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The Home Depot
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The Home Depot Becomes an Official NFL Sponsor
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January 9, 2007
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http://wwwbloombergcom/apps/newspid=20601103&sid=ax33MvEtvy0E&refer=news
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Bloombergcom
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Republican Candidates Increase Share of Business PAC Donations
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August 8, 2006
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http://findarticlescom/p/articles/mi_qn4188/is_20070103/ai_n17090979
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APcom
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Nardelli resigns abruptly as CEO of Home Depot, leaves with $210M
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Jan 3, 2007
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http://wwwnytimescom/2007/07/30/business/media/30depothtml_r=1&ref=business&oref=slogin
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NY Times
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Home Depot Refuses to Drop Ads on Fox News
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July 30, 2007
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http://wwwtennesseancom/apps/pbcsdll/articleAID=/20070829/NEWS01/70829023
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Tennessean title=Home Depot employee looking for job after stopping alleged thief
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August 29, 2007
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