The Home Depot corporate headquarters outside Atlanta.
|Traded as||NYSE: HD|
S&P 100 Component
S&P 500 Component
|Founded||1978; 40 years ago (1978)|
Marietta, Georgia, U.S.
|Headquarters||Atlanta Store Support Center, Cobb County, Georgia, U.S.|
Number of locations
|2,274 (February 2016)|
(Chairman & CEO)
|Products||Home appliances, tools, hardware, builders hardware, lumber, building materials, paint, plumbing, flooring, garden supplies & plants|
|Revenue||US$100.9 billion (2017)|
|US$14.68 billion (2017)|
|US$8.630 billion (2017)|
|Total assets||US$44.52 billion (2017)|
|Total equity||US$1.454 billion (2017)|
Number of employees
The Home Depot, Inc. or Home Depot is an American home improvement supplies retailing company that sells tools, construction products, and services. The company is headquartered at the Atlanta Store Support Center in unincorporated Cobb County, Georgia (with an Atlanta mailing address).
It operates many big-box format stores across the United States (including all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam), all 10 provinces of Canada, and the country of Mexico. The MRO company Interline Brands is also owned by The Home Depot with 70 distribution centers across the United States.
The Home Depot is the largest home improvement retailer in the United States, ahead of rival Lowe's.
The Home Depot was co-founded by Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah in 1978. The Home Depot's proposition was to build home-improvement superstores, larger than any of their competitors' facilities. Investment banker Ken Langone helped Marcus and Blank to secure the necessary capital.
|“||Bernie and I founded The Home Depot with a special vision – to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society||”|
|— Arthur Blank|
In 1979, the first two stores, built in spaces leased from J. C. Penney that were originally Treasure Island "hypermarket" (discount department and grocery) stores, opened in metro Atlanta (in Doraville and on Memorial Drive in Decatur, both near I-285) on June 21. On September 22, 1981 The Home Depot went public on the NASDAQ and raised $4.093 million. The Home Depot joined the New York Stock Exchange on April 19, 1984.
The Home Depot began to branch out of Georgia to Florida in 1981 with stores opening in Hollywood and Ft. Lauderdale. By 1984 The Home Depot was operating 19 stores with sales of over $256 million. To enter the Dallas market The Home Depot acquired Bowater Home Center from Bowater Inc. on October 31, 1984 for $40 million. The increased expansion of The Home Depot in the mid-1980s created financial difficulties with earnings falling at 42% and debt rising to $200 million. The financial difficulties of The Home Depot also caused the stock price to fall. To curb The Home Depot difficulties it opened only 10 stores in 1986 with a stock offering 2.99 million shares at $17 per share that helped The Home Depot to restructure its debts.
In 1989 The Home Depot became the largest home improvement store in the United States surpassing Lowe's. In the 1990s The Home Depot searched for ways to redefine its marketplace. An installation program for quality home improvement items such as windows or carpets was launched in 1991 called the EXPO with success. A 480-page book Home Improvement 1-2-3 was published in 1995. The Canadian hardware chain Aikenhead's Hardware was acquired by The Home Depot in 1994 for $150 million with a 75% share. All of the Aikenhead's Hardware stores were later converted to The Home Depot stores. By 1995 sales reached $10 billion while operating 350 stores.
Former General Electric executive Robert Nardelli became CEO and President of The Home Depot in 2000.
San Diego maintenance and repair supplies company Maintenance Warehouse was purchased by The Home Depot in 1997 for $245 million. Maintenance Warehouse was purchased because it was a leading direct-mail marketer of maintenance, repair and operations supplies that can reach customers out of reach by The Home Depot. Atlanta-based company Apex Supply was acquired by The Home Depot in 1999. Apex Supply is a wholesale distributor of plumbing, HVAC, industrial pipe and fittings. Apex Supply and Maintenance Warehouse were rebranded in 2004 as The Home Depot Supply.
In 2004, Home Depot employees at a suburban Detroit store in Harper Woods, Michigan, rejected a bid to be represented by a labor union, voting 115 to 42 against joining the United Food and Commercial Workers. If the union had won, the Michigan store would have been the first Home Depot to have union representation.
Your Other Warehouse, a large plumbing distributor with a focus on special order fulfillment, was acquired by The Home Depot in 2001. Your Other Warehouse also supplied two divisions of The Home Depot and the EXPO Design Centers. The EXPO Design Center division was reorganized in 2001 with three divisions based in the Northeast at South Plainfield, New Jersey, the West at Orange, California, and the Southeast at Atlanta, Georgia.
The Home Depot entered the Mexican market in 2002 with the acquisition of the home improvement chain Del Norte. In addition, The Home Depot had begun construction of stores in Mexicali and Tijuana. In the same year the Home Depot Landscape Supply was launched to integrate professional landscapers and upscale plants into a plant nursery retail chain. Home Depot Landscape Supply lasted only five years with only a few stores each in metro Atlanta and Dallas/Fort Worth. The Home Depot decided to close all Home Depot Landscape Supply stores in late 2007.
In September 2005, Home Depot Direct launched its online home-furnishings store, 10 Crescent Lane, shortly followed by the launch of Paces Trading Company, its online lighting store. In mid 2006, the Home Depot acquired Home Decorators Collection, which was placed as an additional brand under its Home Depot Direct division.
In 2006, the Home Depot acquired Hughes Supply the largest home retailer in the United States for $3.2 billion. Hughes Supply was integrated into The Home Depot Supply to better serve business-to-business customers. The Home Depot Supply rebranded under the new name HD Supply in January 2007. Five months later The Home Depot sold HD Supply to a consortium of three private equity firms, The Carlyle Group, Bain Capital and Clayton, Dubilier and Rice (with each agreeing to buy a one-third stake in the division).
On January 2, 2007, the 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 previous five years was excessive, considering the stock's poor performance versus its competitor Lowe's. His severance package of $210 million was criticized because when the stock went down, his pay went up.
His successor, Frank Blake, previously served as the company's vice chairman of the board and executive vice president. Blake agreed to a much more conservative compensation package than Nardelli, that is very heavily dependent upon the success of the company. Although a longtime deputy to Nardelli at GE and Home Depot, Blake was said to lack Nardelli's hard edge and instead preferred to make decisions by consensus. Indeed, Blake repudiated many of his predecessor's strategies, and it has been reported that the two men have not spoken since Nardelli departed Home Depot.
In 2008 and 2009, with the downturn in the housing market, The Home Depot announced the layoff of several thousand associates, as well as the closing of 54 stores nationwide, including the entire EXPO Design Center chain. Associates at EXPO were allowed to re-apply for Home Depot jobs after the layoffs, and did not lose any tenure if hired back. In the year of February 2009, sales totaled $71.288 billion, more than $20 billion down from the peak of two years earlier due to the sale of HD Supply and falling revenue at the retained business. In 2012, they proceeded to close the big-box style stores that they had in China, however smaller stores that specialized in custom products and focused on more intimate interactions between customers and associates remain open there.
In 2013 The Home Depot established two large distribution centers in Atlanta and Los Angeles.
In August 2014 it was announced that Frank Blake would step down as CEO and would be replaced by 57-year-old Craig Menear. The change occurred on November 1, 2014. Blake would continue with the company as chairman. Menear joined The Home Depot in 1997, and served in various management and vice-presidential positions, until 2003, including merchandising vice president of hardware, merchandising vice president of the Southwest Division, and divisional merchandise manager of the Southwest Division. He subsequently served as senior vice president of merchandising from August 2003 to April 2007. He then served as an executive vice president of merchandising from April 2007 to February 2014. Until becoming CEO, Menear served as president of U.S. Retail from February 2014 to November 1, 2014.
The company had a data breach in September 2014. One major reason for the data breach was the practice of entering credit card numbers directly into computers at the service-desk and pro-desk, and in specialty departments including flooring, kitchen cabinets, appliances, and millwork, rather than using POS credit card terminals directly. The practice was stopped, and Home Depot offered a year of free credit monitoring through AllClearID for any customers who requested it. There were also reports of credit card numbers being stolen when used to make purchases on Homedepot.com.
On July 22, 2015, Home Depot acquired Interline Brands from P2 Capital Partners, Goldman Sachs' private equity arm, and the management of Interline Brands for $1.6 billion. Interline Brands became fully integrated with The Home Depot in August 2016 with the Interline Brands website merging with The Home Depot website. The subsidiaries of Interline Brands are now companies of The Home Depot.
The Home Depot's mascot has been Homer D. Poe since 1981, when it was first used in advertising. Gwyn Raker, the illustrator says, "I designed him to be a funny guy next door who wasn't intimidating." The Homer Fund, a for-associate charity, is named after the mascot, who since its creation, has been a part of Home Depot culture ever since. This includes signage, advertising, awards and even a life-size costume for stores to rent out. Homer has a wife, named Daisy. 
Home Depot stores average 105,000 ft2 (9,755 m2) in size and are organized warehouse-style, stocking a large range of supplies. Home Depot's two largest stores are located in Union, New Jersey, which encompasses 217,000 ft2 of space, and in Anaheim Hills, California where it encompasses 204,000 ft2. The company color is a bright orange (PMS 165, CMYK 60M100Y, HEX FF6600), on signs, equipment and employee aprons. It was announced in August 2014 that Craig Menear will take over for Frank Blake as CEO while Blake will remain the chairman of the board.
The slogan "More saving. More doing." was introduced by The Home Depot in the March 18, 2009 circular, replacing "You can do it. We can help." which had been used since 2003. Other slogans used in the past 25 years include "The Home Depot, Low prices are just the beginning" in the early 1990s and "When you're at the Home Depot, You'll feel right at home" in the late 1990s and "The Home Depot: First In Home Improvement!" from 1999 to 2003.
US Stores division
Long-time employee Marc Powers became the head of Home Depot's US stores division in 2014. He took the place of Marvin Ellison, who left to become the chief executive of J.C. Penney. In January, 2016 Home Depot announced the departure of Powers as division head, to be replaced by another veteran employee, Ann-Marie Campbell, one of Powers' deputies. The change in leadership is effective as of February 1, 2016. Ms. Campbell has been employed by Home Depot for over 30 years, beginning as a cashier in a branch in South Florida. Her most recent role was as president of Home Depot's Southern division.
The Home Depot has over 90 distribution centers throughout the United States to serve over 2,000 The Home Depot stores.
Interline Brands has over 90 distribution centers throughout the United States, Canada and Puerto Rico that serves customer needs for MRO supplies.
The brands of Interline Brands includes:
- Wilmar Industries (MRO)
- Barnett (MRO, contractor supplies)
- SupplyWorks (janitorial, packaging, MRO)
- US Lock (keys, security devices)
- Hardware Express (hardware supplies)
- Maintenance USA (MRO)
- Leran Gas Products (propane accessories)
The domain homedepot.com attracted at least 120 million visitors annually by 2008 according to a Compete.com survey. In the US HomeDepot.com has 5 Call centers located in Kennesaw, GA; Atlanta, GA; Marietta, GA; Ogden, Utah and Tempe, AZ.
The Home Depot exclusively carries several major brands, including:
Additionally, the retailer has its own house brands:
- Husky (tools)
- Workforce (tools, shelving, storage cabinets, extension cords, worklights, tarps, paintbrushes)
- Glacier Bay (kitchen sinks, faucets, etc.)
- Commercial Electric
- Home Decorators Collection
In 2006, the Home Depot started testing fuel centers at some of its stores. The first such "Home Depot Fuel" convenience store (C-Store) was located in Brentwood, Tennessee followed a month later by a center about 20 miles (32 km) away in Hermitage, both suburbs of Nashville. Four additional prototype stores were built within the year at Acworth, Georgia; Smyrna, Tennessee; Greensboro, Georgia; and then Winchester, Tennessee in that order. The centers were expected to earn $5–$7 million per year, though the actual number was reported to be much higher. The fuel centers sell beer, hot food, and snacks along with providing diesel fuel and gas at a separate island. This allows contractors with large trucks to be able to fill their vehicles. The fuel centers offer car washes, which are large enough to accommodate full-size pickup trucks and other large commercial vehicles.
Board of directors
Current members of the board of directors of the Home Depot are: F. Duane Ackerman, David H. Batchelder, Frank Blake, Ari Bousbib, Gregory D. Brenneman, Albert P. Carey, Armando Codina, Bonnie G. Hill, and Karen Katen. The Home Depot's board consists of 9 members, with 8 of them being independent directors.
The Home Depot Foundation is the philanthropic arm of the company created in 2002. It has contributed over $200 million in time, labor, money, and supplies to a number of causes, including Habitat for Humanity, California-based City of Hope National Medical Center, and playground construction organization KaBOOM! Home Depot supports the U.S. Military community with a 10% military discount.
The Home Depot has partnered with the Georgia Emergency Management Agency's Ready Georgia campaign, leading both supplies and facility use to this statewide effort to increase emergency preparedness among Georgia's children. The company also provided ready kits and other prizes for an art and essay contest for Georgia elementary school students.
In 2005, The Home Depot was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.
The Home Depot has stated on their website that they have a commitment "we continue to lead by example, demonstrating to the world that sustainability business practices are not only possible, they are good for business". The Home Depot introduced a label on nearly 3,000 products in 2007. The label promotes energy conservation, sustainable forestry and clean water. Home Depot executives said that as the world's-largest buyer of construction material, their company had the power to persuade thousands of suppliers, homebuilders and consumers to follow its lead on environment sustainability. "Who in the world has a chance to have a bigger impact on this sector than Home Depot?" asked Ron Jarvis, vice president for environmental innovation at Home Depot. This program is following The Home Depot's promise in the late 1990s to eliminate the number of sales of lumber from endangered forests in countries including Chile and Indonesia. Home Depot has since worked with environmental groups to create a variety of green programs. For example, Home Depot planted thousands of trees at its headquarters in Atlanta to offset carbon emissions. In 2007, The Home Depot Foundation (the company's charitable foundation) committed to investing $100 million over the next decade to build over 100,000 green affordable homes and plant 3,000,000 trees.
Additionally, The Home Depot promotes compact fluorescent light bulbs in its stores. As part of this effort, the company created the largest recycling program in the United States for the bulbs. In March 2013, Home Depot locations in Canada stopped accepting compact fluorescent light bulbs for recycling.
In 2002, The Home Depot joined PBS as a sponsor of This Old House and Ask This Old House.
In 2003, The Home Depot became a sponsor for Trading Spaces.
Company co-founder Arthur Blank also purchased the Atlanta Falcons franchise of the National Football League in February 2002, although The Home Depot made no association with the team until April 2017, when The Home Depot acquired the naming rights to a 13-acre park to be built adjacent to the Falcons' new stadium, Mercedes-Benz Stadium. The Home Depot Backyard is set to be built on the site formerly occupied by the Georgia Dome.
Since 1991, the company has become a large supporter of athletics, sponsoring the United States and Canadian Olympic teams, and launching a program which offered employment to athletes that accommodates their training and competition schedules. The Home Depot ceased to be a sponsor of the Canadian Olympic Team in 2005 and ended a sponsorship program for the United States Olympic team in 2009.
The Home Depot has been a major sponsor for Joe Gibbs Racing in NASCAR since 1999. Their arrival into the series coincided with Tony Stewart leaving the Indy Racing League to join what is now the Sprint Cup Series. Stewart drove The Home Depot-sponsored #20 car for Joe Gibbs Racing until 2008, winning 2 of his 3 series championships in the car, and was succeeded by Joey Logano, who took the car to victory lane twice. After Matt Kenseth joined the team, The Home Depot's status as the #20's primary sponsor was taken over by Dollar General, but the company still served as its most frequent secondary sponsor through its Husky Tools division. On June 23, 2014, the company announced it would end its NASCAR sponsorship after 2014.
The Home Depot was the title sponsor of The Home Depot Center in Carson, California, home to both the Los Angeles Galaxy and Chivas USA of Major League Soccer, and Los Angeles Riptide (Major League Lacrosse), and many past major sporting events. The venue is now called StubHub Center.
In 2006, The Home Depot partnered with Duke University's Edmund T. Pratt Jr. School of Engineering to create "The Home Depot Smart Home". The smart home is a live-in laboratory for ten upper-class engineering students that allows them to immerse themselves in the work. The goal of the project is to help provide innovative solutions for the home in areas such as security and home monitoring, communications, energy efficiency, entertainment, environment and health.
In January 2007, The Home Depot became the official home improvement sponsor of ESPN's College Gameday.
Seventy-three percent of The Home Depot's campaign contributions went to Republican candidates in the 2005–2006 US elections. "Home Depot's PAC gives money based on a candidate's voting record, committee assignment and leadership position," said company spokesman Jerry Shields. The CEO in this period was Bob Nardelli, a friend of U.S. President George W. Bush. Nardelli hosted a garden reception/fundraiser for Bush at his Atlanta home on May 20, 2004.
Home Depot Canada is the Canadian unit of the Home Depot and one of Canada's top home improvement retailers. The Canadian operation consists of 182 stores and employs over 28,000 people in Canada. Home Depot Canada has stores in all ten Canadian provinces and serves territorial Nunavut, Northwest Territories, and Yukon through electronic means (Online Sales). The Canadian head office is located in Toronto.
The Canadian unit was created with the purchase of Aikenhead's Hardware. Home Depot management has an ambitious plan to overtake its biggest competitor, RONA, which has about four times as many stores. However, some of RONA's stores are smaller than the typical Home Depot store. In terms of big box stores, the Home Depot has more stores than RONA, (not including other Rona banners such as Réno Dépôt or Cashway). As of 2007, RONA pulled ahead of The Home Depot in total retail sales, due to aggressive consolidation efforts by RONA, combined with the loss of The Home Depot's industrial supply division, HD Supply, in July 2007. The Home Depot now faces competition from Lowe's as they have moved into the Canadian market effective the end of 2007; Lowe's now has 35 outlets in Canada.
In Quebec, where it has 22 stores, The Home Depot is branded simply "Home Depot" (using English words but without the definite article "the").
The Home Depot operates 106 stores in Mexico and has become one of the largest retailers in Mexico since it entered the market in 2001. The Home Depot increased its presence in Mexico in 2004, with the acquisition of Home Mart, the second largest Mexican home improvement retailer.
The Home Depot Mexico employs more than 11,000 associates throughout the country and has an annual growth rate of 10 percent.
In December 2006, the Home Depot announced its acquisition of the Chinese home improvement retailer The Home Way. The acquisition gave the Home Depot an immediate presence in China, with 12 stores in six cities.
In April, 2011, Home Depot shut its last Beijing store, the fifth Home Depot to close in China in the previous two years. In September 2012, The Home Depot announced it was closing all big box stores in China. The Home Depot retained two specialty stores in China, a Home Decorators Collection Store and a paint and flooring store.
As of September 16, 2012, all seven of the box stores in China had been shut down. The Home Depot has no immediate plans to further expand its specialty stores in China. The company is taking a "wait-and-see" attitude towards the Chinese market, but does not want to completely pull out because re-entry into the market would be very costly.
The Home Depot's lack of success in China has been attributed to the disconnect between The Home Depot's do-it-yourself ethos and Chinese culture. In 2012, the Home Depot conceded that it misread the country's appetite for do-it-yourself products. As a spokeswoman for the company said in an interview with the Wall Street Journal, "The market trend says this is more of a do-it-for-me culture". Culturally, manual labor is seen as an activity for lower-class citizens, and some have speculated that The Home Depot could have capitalized on this by offering a do-it-for-me model to Chinese consumers. Chinese consumers prefer to see a finished product, such as a renovated room, rather than light bulbs and lumber. The same issue does not exist outside of China, especially in Canada, where Chinese Home Depot advertisements and store signage can be found in areas with large Chinese demographics.
There were reports that the Home Depot was interested in acquiring B&Q, the largest DIY retailer in the United Kingdom, Ireland and China. Speculation of a takeover began in 1999 when the retailer Asda was purchased by Walmart. The Home Depot would have to acquire Kingfisher plc, B&Q's parent company, to acquire B&Q. Kingfisher consists of several European DIY chains; however, the Home Depot was only interested in B&Q operations and says that it would dispose of the Castorama chain which operates in France, Italy, Poland and Russia. Talks ending in 2005 did not result in any takeover deal.
In 1997, Home Depot entered the Chilean and Argentine markets. While the venture was viewed with great optimism by founders Bernard Marcus and Arthur Blank, it eventually proved unprofitable. In October 2001, Chilean partners Falabella bought out Home Depot's share of the five Chilean Home Center stores and rebranded them Home Store. In 2003, after merging with Sodimac, all stores adopted that brand. The company has since expanded across Latin America very profitably and successfully. It's currently the N°1 Home Improvement company in South America. In 2002, Argentina's Home Depots were bought out by Chilean company Cencosud and rebranded Easy stores, a company that has also expanded across South America. It's currently the N°2 Home Improvement company in South America.
The Home Depot was embroiled in whistleblower litigation brought under the Sarbanes-Oxley Act (SOX) law. In July 2005, former employee Michael Davis, represented by attorney Mark D. Schwartz filed a whistleblower lawsuit against the Home Depot, alleging that his discharge was in retaliation for refusing to make unwarranted backcharges against vendors. Davis alleges that the Home Depot forced its employees to meet a set quota of backcharges to cover damaged or defective merchandise, forcing employees to make chargebacks to vendors for merchandise that was undamaged and not defective. The Home Depot alleges that it fired Davis for repeatedly failing to show up for work.
The trial initially was concluded in June 2006, but in April 2007, U.S. Department of Labor Judge Pamela Lakes Wood ordered the case reopened after the Home Depot's law firm Akin Gump Strauss Hauer & Feld revealed that the retail giant's in-house counsel had told them that two Home Depot employees who testified at the trial had lied. Akin Gump sent Wood a letter on September 29, 2006, in which the law firm requested that the testimony be stricken. In response to Akin Gump's revelation, Davis' attorney Mark D. Schwartz asked for the case to be reopened to permit further questioning of the witnesses. On April 6, 2007, Wood ordered the case to be reopened.
Schwartz was quoted by the New York Post as saying, "I have reason to believe these witnesses were intimidated into giving false testimony." The Home Depot called Schwartz's allegations "meritless".
Home Depot has settled the dispute in a stipulation of settlement dated March 28, 2008. In the settlement, Home Depot changed some of its corporate governance provisions. Home Depot also agreed to pay the plaintiff's counsel $6 million in cash and $8.5 million in common stock.
Patent law controversy
Powell v. Home Depot USA, Inc. (2008cv61862) (2011) was a decision by the United States District Court for the Southern District of Florida concerning patent infringement on a "safe hands" device that Michael Powell, an independent contractor for Home Depot, created in response to injuries to the hands of associates using in-store radial arm saws. The District court jury returned a verdict in favor of Powell.
In 2011, Home Depot appealed against the decision to the United States Court of Appeals for the Federal Circuit, challenging the district court's denial of its renewed motion for judgment as a matter of law on the issues of infringement, willfulness, and damages. They also challenged the district court's claim construction, inequitable conduct, and attorney fees determinations. The appellate court found no inequitable conduct and insufficiently egregious misconduct on the part of Powell's attorney.
Tilt-up construction design of stores
In the wake of the 2011 Joplin tornado in which the walls of a Home Depot collapsed after being hit by an EF5 tornado, The Kansas City Star, citing engineers, criticized Home Depot's practice of using tilt-up construction in hundreds of its big-box stores (other nearby big-box stores in Joplin, including a Walmart and Academy Sports, which had concrete block construction, lost their roofs but the walls remained intact). In tilt-up construction the concrete is poured onsite, lifted into place, and then attached to the roof. The engineers told the Star that the practice, while normally safe and efficient, is dangerous in major storms because once the roof is lifted (as happened in Joplin) the walls collapse in a domino effect. Seven people were killed in the front of the store when the 100,000-pound walls collapsed on them, while 28 people in the back of the store survived when those walls collapsed outward. Only two of the slab walls in the Home Depot survived. In contrast, 3 people died in the Walmart but 200 survived. Engineers noted that when concrete block construction fails, structural elements break in pieces and usually not in huge slabs. Home Depot said it fundamentally disagreed with the engineers quoted by the Star and said it would use tilt-up construction when it rebuilds the Joplin store.
Home Depot payment system breach
See also: List of data breaches in the United States
On September 2, 2014, security news reporter Brian Krebs reported that he was seeing evidence of credit card numbers linked to Home Depot purchases being sold online, which he concluded to suggest that The Home Depot's payment systems were breached by hackers. On September 8, 2014, Home Depot confirmed that their payment systems were compromised. According to their press release, this breach affected any customers who made purchases at any Home Depot store from April 2014 to September 2014. Home Depot offered their affected customers free one-year credit monitoring service from AllClear ID. Also in their press release, they made sure to emphasize that there was no evidence to suggest that online customers were affected by the breach. On September 18, 2014, Home Depot released a statement saying that the hackers obtained a total of 56 million credit card numbers as a result of the breach. Since the breach, Home Depot has rolled out new encryption technology for their cash registers and self-checkout systems to protect customers. A class action lawsuit was filed against the company.
In March 2016 Home Depot agreed to pay at least $19.5 million to compensate the more than 50 million consumers affected. The settlement terms included a $13 million fund to reimburse shoppers and a $6.5 million fund for cardholder identity protection services.
EEOC disability discrimination suit
In September 2012, Home Depot agreed to pay $100,000 and furnish other relief to settle a disability discrimination lawsuit filed by the U.S Equal Employment Opportunity Commission, for the alleged failure to provide a reasonable accommodation for a cashier with cancer at its Towson, Maryland, store and then for purportedly firing her because of her condition.
- Lowe's, another American home improvement and construction product services, which competes with The Home Depot in the United States, Canada and Mexico.
- Home improvement
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- ^(PDF). Home Depot. Mar 1, 2018 http://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/reports-and-presentations/quarterly-earnings/q4-2017-press-release.pdf.
- ^"The Home Depot Completes Acquisition of Interline Brands, Inc". PR Newswire. August 24, 2015. Retrieved 9 April 2017.
- ^"Vinings CDP, Georgia". U.S. Census Bureau. Archived from the original on February 12, 2011. Retrieved July 4, 2011.
- ^Ausick, Paul (March 9, 2017). "Why Home Depot Dominates the Home Improvement Market". 247 Wall Street. Retrieved 9 April 2017.
- ^"Home Depot Corporate website: Our History"
...THE HOME DEPOT’S ORGANIZATIONAL COMMUNICATION Organization Communications Mgmt 305 Potomac College Abstract This paper will analyze the culture of The Home Depot and its communication practices. This will be accomplished by examining the dimensions of the organization’s structure. The Home Depot’s sociability, power distribution and job autonomy, degree of structure, achievement rewards, opportunities for growth, tolerance for risk and change, conflict tolerance, and emotional support will be used to determine if the organization has a Theory Y culture. Introduction Home Depot is considered to be one of the top ranking home improvement organizations. The mission statement of this organization was formulated around being “committed to maximizing long term shareholder value while supporting management in the business and operations of the company, observing the highest ethical standards and adhering to the laws of the jurisdictions within which the company operates” (Homer TLC INC, 2010). The Home Depot transformed the “home improvement industry” by providing a well round reputation for products, corporate governance and strong values within the community. The purpose of The Home Depot remains to build relationships, have social responsibility, and concrete ethics as an organization. Employees are respected, offered growth and reputable incentive plans. Public policy makers and Home Depot collaborates on ideas to assure prosperity in our society. Home Depot......
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...External Environment Analysis Introduction This essay is written in regards to the Home Depot and the evaluation of their external environment. The Home Depot is a highly successful retail industry that has expanded globally. The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist with any larger home improvement needs. The Home Depot has made a continuity plan to assist with protection of the customers, associates, and the industry if a crisis or disaster occurs. A continuity plan is basically the instructional list or procedures for the company in the event that a crisis or natural disaster occurs and how they will handle that event. This essay will look at how the external environment affects that plan. This essay will also look at the affects of the environment in three other areas as well, including general, industry, and competitor. Finally, it will look into the business ethics and see how they play a role when gathering information for competitor intelligence. The Home Depot has a continuity plan that they follow that can be found in their code of conduct and ethics manual. That continuity plan is as follows: “We are committed to taking all reasonable steps to minimize risks to our associates, customers, facilities, information assets and supply chains and maintaining the continuity of our business when a crisis occurs. A crisis can be natural or......
Words: 304 - Pages: 2
...The Home Depot Financial Management Project Company Financial Analysis For: Professor Ana Machuca Submitted by Team A: Betcher, Rhonda Cammack, Cheryl Desai, Shekhar Barnes, John Babatunde, Lasisi Adamson, Christopher Submission Date: February 26, 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY: ...................................................................................... 3. COMPANY INTRODUCTION: ............................................................................... 5. FINANCIAL ANALYSIS: ......................................................................................... 8. WEIGHTED AVERAGE COST OF CAPTIAL (WACC): ........................................ 11. FUTURE CASH FLOWS: ...................................................................................... 16. HISTORICAL STOCK PRICE: .............................................................................. 22. SECURITY ANALYST’S REPORTS: .................................................................... 25. DIVIDEND and CAPITAL STRUCTURE: .............................................................. 26. CORPORATE GOVERNANCE: ............................................................................ 28. MERGER and INTERNATIONAL STRATEGY: .................................................... 29. REFERENCES: .....................................................................................................
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Organizational Structure of Home Depot
...phoenix.edu CST Organizational Structure of Home Depot The company that I am actually really familiar in organizational structure is Home Depot, since I used to work there. “The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia.” (The Home Depot, 2012, para. 1). They started in a large open warehouse which carried thousands of products, with nationally known brands along with the Home Depot brand. The Home Depot has given great customer service right from the start and has employed knowledgeable people to help offer assistance and answer any questions customers have with home renovation projects. The Home Depot has seen an incredible growth and today is one of the largest home improvement retailers in North America. On an international scale, Home Depot has expanded to Canada, Mexico, and even in China. The competition consists of Ace Hardware and Lowes, which is the main competitor. There are three structures used within businesses: simple, functional, and multidivisional structures. Simple structure is mainly used within smaller companies, and usually the head of the company makes all of the decisions and the employees follow directions from the head of the company. The functional structure is where the......
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...Home Depot Service In 1978 Home Depot organization opens the first retail home improvement store in Atlanta Georgia. The organization developed strategic product analysis delivering a variety of assortments to customers. Innovative merchandise targets internal and external customers of the organization for do it yourself projects, professional contractors, free how to clinic and children workshops are available for customers to complete construction projects on different job sites. Home Depot evolved into internationally recognized specialty retailer that markets and delivers 40,000 different building materials, lawn and garden products, home improvement supplies, appliances, and more than 250,000 other products that can be especially ordered (The Home Depot U.S.A., Inc., 2003-2006). It has been noted that “The Home Depot has convenient locations throughout the United States. Stores average 105,000 square feet with approximately 23,000 additional square feet of outside garden area” (The Home Depot U.S.A., Inc., 2003-2006, Our Company, Stores and Product section). A possible solution for addressing and fulfilling the organization’s expectations is to examine policies and procedure requirements for an additional customer service. Home retail improvement products and services in the future will gain efficiencies from departments such as services that are policy written and business procedures through development of more new products demanding customizations from......
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...Home Depot Patsakorn Niruntasukrat Mahidol University International College Preparation Center for Language and Mathematics February 27, 2014 Home Depot Foundation's Sustainability Obama stated that “It is not a choice between our environment and our economy; it is a choice between prosperity and decline” (“Sustainable Development Strategies”, 2009). Sustainability means the balance of three things which are steady business, society and friendly environment. In other words, businesses must show crucial responsibility in terms of environmental impacts and social responsibilities. Consequently, businesses must utilize natural resources carefully, and the economic growth and employment rate of businesses must be increased (“Understanding Sustainability”, n.d.). Therefore, sustainability is an aim of businesses. The Triple Bottom Line or TBL is a significant tool advocating sustainability goals. The concept of TBL emphasizes three things, which are healthy communities (people), clean environment (planet) and stable profitability (profit) (“Slaper & Hall”, n.d.). In contrast with the past, many businesses, nonprofit organizations and government entities tend to follow this guideline. Home Depot is one of the best examples of companies which are following the TBL standard. Home Depot is the world biggest home improvement retailer (“Did You Know”, n.d.). The company was established by Bernie Marcus and Arthur Blank in 1978. The first two stores opened on June 22...
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...THE HOME DEPOT, INC. Introduction 1. Identify the company’s mission, vision, and primary stake holders. 2. Identify the five forces of competition and how it impacts the company. 3. Create a SWOT analysis for the company identifying the major strengths, weakness, opportunities and threats. 4. Based on the SWOT analysis, recommend how the company may capitalize on its strengths and opportunities, and minimize its weaknesses and threats. 5. Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability. 6. Determine the recent corporate governance issues that are currently affecting the company’s decisions and report how the company is or should be handling the issues. 7. Use 4-5 external sources as part of your assignment. Introduction Home Depot, Inc. is the world’s largest home improvement retailer with 2,246 retail stores in all 50 states in United States, the District of Columbia, Puerto Rico, Virgin Islands, Guam, 10 Canadian provinces, Mexico, and lastly China. HD (Home Depot) provides employment to approximately 321,000 full time employees. HD stock is traded on the New York Stock Exchange (NYSE:HD), is included in the Dow Jones industrial average and Standard & Poor’s 500 index. This company sales a range of building materials, home improvement and lawn and garden. (Poor's, 2011) Home Depot was found by Bernie Marcus and Arthur Blank, on June 29, 1978. Their vision was to create......
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...Running Head: Home Depot Talent Practices at Home Depot Shaniekia Moore Strayer University Dr. Sheila Letica Talent Management HRM 532 January 20, 2011 Lockwood, (2006) determine that in a competitive marketplace, the talent management process is one of the most important driver for organizational success. Home Depot maintains itsâ€™ competitive edge by using their organizational talent in the Do It Yourself industry. This is achieved by having an exemplary organizational structure of values, principles, and beliefs. In achieving that status, Home Depotâ€™s emphasized the importance of employeesâ€™ knowledge of the business and their enthusiasm, (Grow, Brady & Arndt, 2006) and hiring of dependable and knowable older workers (Silzer, & Dowell, 2010). In addition to be effective in maintaining that competitive edge Home Depot has various programs that focused on a wide array of leadership development. They encouraged cross-functionality across the company (Gandossy and Verma, 2005), groomed internal talent to allow for peer tutoring from other executives (Gandossy and Verma, 2005) underscored the importance of human capital and engaged store associates in creating a superior customer experience (Silzer, & Dowell, 2010). The key channels that Home Depot developed for recruiting talent, is focusing its recruiting efforts on older workers by partnering with the senior citizens group, American Association of Retired Persons (AARP), (Tucker, Kao, and......
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...Risk Assessment Introduction Home Depot was founded in 1978 by two individuals and they are Bernice Marcus and Arthur Blank. The two wanted to change the way people thought and took care of their home and their gardens. They created the do it yourself concept and that way of thinking has caught on and has spawn across the globe. Home Depot headquarters are in Atlanta, Georgia. Today Home Depot is the largest home improvement retailers. It has over 2200 stores throughout the United States and that also includes Puerto Rico, U.S, Virgin Islands, Canada, Mexico and even China. Home Depot employs 317,000 individuals in all off the stores. Home Depot sells anything from carpenter needs, carpet, appliances and most everything that a person would need to complete their do it themselves projects. Strengths and Weakness The Home Depot stores has a variety of areas where their strengths and weaknesses are greatly measured and used to help make their business and their stores strive and be successful. The first area that is going to be mentioned is the stores. To begin the strengths of Home Depot it has to start will all of the employees. It also builds it strengths around their merchandise that they carry. They want to make sure that they have everything that a do it yourself person to do their construction that they need to do. Projects are what people want to do to make the necessary improvements to their homes and landscapes. Home Depot wants to make their customers......
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The Home Depot
...The Home Depot, Inc. ACC/497 The Home Depot, Inc. Management, board of directors, and potential investors gain crucial information on the status of a company by reviewing and analyzing the different financial statements. A financial statement allows users a peek into its financial well-being in order to make informed decisions in relation to that company. One of the most common financial statements is the income statement and is frequently referred to as the profit and loss statement. Following the financial statement and/or profit and loss statement is the balance sheet and cash flow statement. Both are equally as useful when making decisions and gaining insight on a company. The following analysis has been put together using the income statement and/or profit and loss statement, balance sheet, and cash flow statement for The Home Depot’s Inc 2008 fiscal year. The Consolidated Statement of Earnings gives users insight into the company’s expenses and earnings incurred during a specific fiscal year. After reviewing The Home Depot’s income statement for the 2008 fiscal year, it displays a company with strong sales numbers of $71 billion for the year. While $71 billion in sales seems impressive, The Home Depot Inc. actually had a $6 billion dollar decrease in sales from the previous year. The Home Depot Inc. attributed this considerable decline in sales to the struggling U.S. residential construction and home improvement market. Along with their drop...
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The Home Depot
...statement of cash flows. This paper will analyze Home Depot, Inc. 2008 annual report. The Home Depot, Inc. The Home Depot is a public “do-it yourself” home improvement and construction retailer. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank (depot, 2015). The company’s website states that “today The Home Depot is the world’s largest home improvement specialty retailer, with more than 2,200 retail store in the United States (including Puerto Rico and the U.S. Virgin Islands), Canada, and Mexico” (depot, 2015). The Consolidated Statements of Earnings The consolidated statement of earnings or commonly known as the income statement is a financial statement that measures a company’s financial position over a specific accounting period. The statement includes: revenues, expenses, gains and losses. The fundamental equation used to generate the income statement is Revenues-Expenses=Profit or Loss. A consolidated statement of earnings combines all major expense accounts into broad categories to provide simplicity. This allows readers of the statement to see a high level overview of operational performance in a single location. Investors can use this information to predict the financial performance of a company in the future and forecast the probability to stock price will rise in value. Likewise, creditors can use this information to ensure that a company can generate sufficient income to pay its bills. The Home Depot’s 2008 annual report includes......
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...Home Depot Background: The Home Depot’s got started in the year 1978, Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah were the founders. The owners Marcus and Blank got the $2000,000 that was required from a group of investors; also they were given 2 years to get their business up and running. They did lease three unoccupied buildings from J.C. Penney in Atlanta, Georgia, determining that city was the best place to start up their first store. They successfully gathered another $3.5 million in the form of loans, which was used to procure inventory. Furthermore they hired 20 employees to help run the management end of the business. On June 22, 1979, the very first three Home Depot stores, staffed by 200 workers, opened up in Atlanta. The organization began with Marcus as the chairman of the board of directors and CEO, and Blank as the president. Home Depot’s Profile: * Employees: 256,300 * CEO: Robert L Nardelli * Subsidiaries: EXPO Design Center; Maintenance Warehouse; Georgia Lighting; Apex Supply Company; Your "other" Warehouse; Home Depot Commercial Direct Division; Total HOME * Notable Stores: Home Depot; EXPO Design Center; Villager's Hardware; Del Norte * Major Competitors: Lowe's; Menard; TruServ. Lowe’s at a Glance: Lowe’s and Home Depot are the two largest retailers in the home improvement industry. Lowe’s being the 2nd largest in the industry, however, It was originally incorporated as “North Wilkesboro Hardware” in...
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...Summary and Conclusion Home Depot remains the world’s largest home improvement retailer and makes for a sound investment choice. Its eight-core value system covers every cornerstone surrounding the industry and serves as a building block supporting its future ventures. It also allows the retailer to quickly adjust to market conditions and consumer needs, thereby maintaining the lead over competition. So far, the results have been favorable and will continue in the same direction for the foreseeable future, according to the historical financial data. The income statements and balance sheets from the past three years confirm the financial dependability of the company. Home Depot has maintained a steady 4% growth in gross profit and net sales all while increasing its current assets by nearly 8% in 2012. Most of the increase was reflected in its Cash and Accounts Receivables, which make the company more liquid. Furthermore, the company realized a 7% decrease in total current liabilities, respectively. Not only do the variations improve the liquidity of the company, but they also suggest that operations were mostly supported by long-term debt, which bear less interest and improve credit ratings. It could also be that Home Depot has found more efficient ways to conduct operations and reduced the need for external financing altogether. In addition, both, the return-on-equity and return-on-assets continued to rise during the past three years enforcing the company’s......
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...The Home Depot Home Depot’s Plan Home Depot had several intentions in regarding the use of its organizational talent to gain a competitive advantage in the Do It Yourself Industry. The first of these is to ingrain the importance of corporate success through human capital. In the current economic environment, corporate success and growth; even survival, is dependent on the firm's ability to create employees that are motivated, skilled, and committed. The concept of how important human capital is to corporate success can be summed up with a quote from Nobel Prize-winning economist Gary S. Becker says that “The basic resource in any company is the people. The most successful companies and the most successful countries will be those that manage human capital in the most effective and efficient manner” (Brocaglia, n.d.). The Home Depot embraced this idea when the company considered its organizational talent as a competitive edge. The second of these intentions is first-class customer service through engaged employees. Employees are the first line of defense and influence when it comes to a firm's level of achievement in customer service. Customer service and satisfaction become the competitive advantage that allows for retaining customers longer even through severe price competition; and that satisfaction should be paramount through all stages of customer interaction (IBM, 2007). By placing such an emphasis on a satisfying customer experience, The Home Depot......
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...Discuss how leadership at Home Depot intended to use its organizational talent to gain a competitive advantage in the Do It Yourself industry. According to Silzer (2010), Home Depot places approximately 17,000 leaders into positions each year. This includes placements as first line supervisors and continues all the way to placing executive vice presidents. Home Depot has to make sure that the candidates selected to fill any of the supervisors, assistant manager, and store manager level vacancies fit the mold they need to have continuing success within their organization. Home Depot also hires a significant number of hourly retail associates every year. Home Depot must source and hire tens of thousands of retail associates each year. Hiring that amount of associates, you must have some sort of plan in place for the selection of employees and to develop leaders within your organization. Home Depot has utilized talent channels as a tool to selecting their future employees and pipeline programs to develop their employees into the leaders they have aspirations on becoming. Discuss the key channels that Home Depot developed for recruiting talent. Home Depot recognized that they would need very talented leaders to inspire and engage very skilled talent. In order to accomplish this Home Depot created multiple talent channels. Each channel had either a specific purpose or was designated for a specific talent segment. Talent channels were used to attract people to be......
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