Atlanta, GA, July 15--Home Depot Inc. Chairman Robert Nardelli said on Tuesday that the retailer was not backing off its plans to open 200 stores and hire 40,000 workers in 2003.
"We've been very fortunate that even during these difficult times, the homeowner is still investing in their home," Nardelli told reporters after a ceremony pledging support for workers on active military duty.
Nardelli said Home Depot, which is investing heavily this year in store remodels, new merchandise and technology, was in the "sweet spot" of retailing as low interest rates bode well for the U.S. housing market.
Home Depot's chief also reiterated that the retailer was eyeing "opportunistic acquisitions" in Europe and Asia.
Nardelli said recent rumors of possible Home Depot interest in home improvement concern Kingfisher Plc were likely prompted by the U.K. company's spinoff of its electrical business earlier this month. Nardelli noted that Home Depot has long been mentioned as a possible bidder for Kingfisher assets.
"Any corporation that has a strategic long-term plan is looking at enhancing the core, extending the business, expanding our markets," Nardelli said. "We think that it's only prudent to continually look at a variety of opportunities domestic and international."
On Tuesday, Deutsche Bank Securities said in a note that Nardelli was scheduled to meet with new Kingfisher chief executive Gerry Murphy later this week during a European trip to visit clients.
In the note, analyst Michael Baker said Kingfisher would be "the most likely" acquisition target for Home Depot in Europe. But he said such a deal could raise concern that Home Depot was losing focus on its U.S. operations that still need improvement.
