Home Depot Has $4-Billion Plan To Fix Operations And Lure Contractors
The action comes after Atlanta-based Home Depot's stock plummeted more than 50% over the past year. Bob Nardelli, chairman, president and chief executive officer brought in to be the company's "officer of change" in 2000, says that he recognizes a "challenging economic environment," but plans to open stores in "under-served markets." He expects sales to grow 9 to 12% by the end of the year.
Home Depot also is remodeling its tool-rental program to better serve professional contractors. It currently operates tool-rental centers inside nearly 600 of its 1,550 super-stores. By December, it says it will add 200 more rental outlets and expand the rental inventory with more "contractor-grade" items. The idea is to steal market share from national equipment rental chains, such as United Rentals, Greenwich, Conn., which operates 750 rental outlets in North America and owns 500,000 pieces of equipment.