New York, NY, September 13--Home Depot Inc.'s management will continue to reinvest in the company through elements such as new stores, store modernization and information technology, chairman, president and chief executive Bob Nardelli said Friday.
Speaking at the Goldman Sachs retailing conference in New York, which was Web cast, Nardelli also noted that the home improvement retailer had completed its $6 billion share repurchase in the second quarter. That speaks "volumes" about the faith that management has in the company's growth, he said.
Part of Home Depot's growth strategy remains enhancing its core through elements such as store modernization, carrying distinctive and innovative merchandise, having top-notch information technology and employee development, CEO Nardelli said. Under store modernization, for example, Home Depot continues to make its store brighter, cleaner and more "shoppable," Nardelli said.
The four factors are designed to lead to higher average sales receipt and increased transactions. The other pieces of Home Depot's growth strategy are extending its business and expanding its market.
Home Depot is also examining "mega trends," Nardelli said. For example, the retailer views the growth of the Hispanic population and the aging population as opportunities, he said.
The retailer has bilingual employees in more than 500 stores, and Home Depot understands the importance of offering products in a bright color palette for the Hispanic population, Nardelli said.
As for the aging of the baby boomers, Home Depots sees an opportunity to go from "do it yourself" to "do it for me" for many of those customers, Nardelli said.
Canada, Mexico and China remain part of Home Depot's growth strategy as well, CEO Nardelli said. The retailer currently has 106 stores in Canada but will end the year with 115 to 116 stores there. Mexico is a $15 billion market and its growing middle class represents an opportunity, Nardelli said.
Home Depot opened its first store in Manhattan on Friday.
Looking at the second half of the year, Home Depot is "encouraged" by some of the indices it sees in "industrial spending," Nardelli said during the question and answer session. That bodes well for the job market and consumer spending, he said.
The Atlanta company is also pleased by the growth in home ownership, Nardelli said. People have taken advantage of low interest rates and can now do some modernization and updating of their homes.
