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| Home Depot announces 2007 plans Home Depot, the world's largest home improvement retailer, reported its financial outlook and key priorities for driving retail growth in 2007. The company said it does not expect residential construction and the housing market to improve until late in the second half of 2007 or early 2008. "We are first and foremost a retail business, and our 2007 plans reflect that commitment", said Frank Blake, chairman & CEO. Total investment in five key priorities in fiscal 2007 is projected to be approximately $2.2 billion, comprised of $1.6 billion in capital spending and $600 million in expense. Home Depot intends to focus on know-how and service as a competitive edge. During 2007, the company plans investments in associate engagement to total $360 million, including recruitment of master trade specialists, a simplified staffing model, technology-enabled customer assistance, and redesigned compensation and reward plans. Product innovation, more focused promotions and everyday low pricing will drive Home Depot's merchandising initiatives. The company expects to invest $260 million in 2007 on merchandising resets, product innovation, pricing strategies and sourcing initiatives. Home Depot will focus on improving its in- stock position by investing in its logistics capabilities, including demand forecasting and distribution. It plans to invest $275 million in these efforts. In 2007, the company plans investments to total $865 million to support the shopping experience, including sustained maintenance and merchandising reset programs. Home Depot's goal is to be the number one destination for pro customers, primarily repair and remodel professionals. During 2007, the company expects to spend $415 million on programs such as loyalty programs, a pro bid room to handle large customer orders with volume discounts, direct ship programs, credit programs and other specialty sales initiatives. write your comments about the article :: © 2007 Construction News :: home page |