Atlanta, GA, Jan. 22--Expo Design Center, the Home Depot division aimed at high end remodeling projects for higher income customers, is looking to broaden its customer base as a way to increase sales, according to the Atlanta Journal Constitution.
"We want to make ourselves more affordable to the public," Expo division president Bob Wittman told the Journal Constitution on Tuesday.
Originally, Expo targeted wealthy homeowners planning big ticket projects such as a $75,000 kitchen remodel. But the weak economy and perception that people with more moderate plans need not shop there affected sales.
As a result, Home Depot has decided to slow Expo's expansion, revisit the business strategy and develop a new plan for growth.
Last year, Home Depot opened 11 new Expo Design Center stores. The firm will only open two this year, in one Cleveland and one on the West Coast. It also will remodel some of its existing 52 stores.
"What we've done now is stepped back," Home Depot chairman and CEO Bob Nardelli said. "We've looked at the top 100 metropolitan cities that represent a population base --- a per capita income base that would support an Expo. And that's why we've taken a hiatus, if you will."
Expo will be "marginally profitable," though, in fiscal year 2002, which ends February 2, Nardelli said. "That's a sign of encouragement as we go forward."
Some of the changes at Expo will include a new product mix including small appliances and cookware and more cash and carry items that don't need to be ordered. Expo will also target families with annual incomes of $50,000 and up, down from its current target of $75,000 and above.
