The Home Depot (Ticker: HD) is the world’s largest home-improvement retailer along with being an American Fortune 50 company. The company operates 2,259 retail building supply/home improvement “warehouse” type stores all across the United States, Canada and Mexico. The Home Depot has over 340,000 team members and is based in Atlanta, Georgia. The average store size is just over 100,000 square feet along with an additional 24,000 square feet set aside for seasonal gardening.
The Home Depot’s two main customers are at home “do-it-yourselfers” and contractors. The main products and services offered help solve the wants and needs of customers involved with home construction and maintenance, renovation and remodeling.
The competitive environment for the home-improvement industry is broken into three major players: The Home Depot, Lowe’s and local retailers. They compete with local retailers that specialize in nearly every product and service offering. The Home Depot and Lowe’s are both “all offerings” locations spread throughout North America. Over the past decade Home Depot was stickily focused on expanding the store count and business lines whereas Lowe’s was focused on store count growth and perfecting their supply chain and internal technology.
Over the past 13 years The Home Depot has more than doubled its store footprint. It was aided by two major factors; First being that the home improvement and building industries were growing quickly providing a constant demand for product. Second, funding was easy to receive and it was relatively cheap because of low interest rates. Management began to “empire build” with their now sold professional supply business (now known as HD Supply) and cut costs in their big box stores to help reduce costs. With the reduction of cost came the reduction in customer satisfaction.
Return to Retail
Noticing that customer satisfaction rating