ATLANTA -- Home improvement retailer Home Depot has announced several new initiatives for 2006 at its annual meeting with the investment community. Chairman, President and CEO Bob Nardelli and members of the company's leadership team described in detail their 2005 accomplishments, the company's plans for the coming fiscal year and the company's growth vision for 2010.
Among the initiatives: four convenience store openings in the first half of 2006, with the possibility of 300 by 2010. The stores reportedly will include gasoline pumps.
Over the next five years, The Home Depot expects to maintain and grow its leadership position in home improvement retail worldwide, said Nardelli. At the same time, we expect to become the nation's largest diversified wholesale distributor, become No. 1 in services and will dramatically increase our direct-to-consumer channels.
The company's 2010 targets include annual sales growth of 9% to 12%, earnings per share growth of 10% to 14%, 400 to 500 new store openings and an aggressive growth trajectory for its smaller-footprint, urban fill-in concept Home Depot Supply.
Tom Taylor, executive vice president of merchandising and marketing, said the company will introduce distinctive and innovative new products in 2006, supported by continued investment in store modernization and merchandising resets reflecting emerging consumer trends. Our No. 1 priority is to create a unique, one-of-a-kind shopping experience for customers, he said. Store modernization, product innovation and a compelling value proposition will differentiate our stores in the marketplace.
Carl Liebert, executive vice president of Home Depot Stores, described how the company is leveraging technology to increase efficiency and create a fun, productive shopping environment for customers. New operational initiatives will free associates to spend more time serving customers. By 2010, the company expects that 70% of operational hours will be dedicated to the selling floor.
New technology is driving productivity and customer service initiatives. The company has redeployed approximately 100 hours onto the selling floor as a result of technology enhancements, including self-checkout and new POS systems.
Home Depot has 2,028 stores in all 50 states, the District of Columbia, Puerto Rico, 10 Canadian provinces and Mexico.
The company offered no specific details on the c-stores, and could not be reached for comment.
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