Home Depot 1999 Annual Report Download - page 9

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5
Developing Our Capabilities
We’re smart enough to know what we don’t
know. If we don’t have the expertise or experience
we need, we get it. During fiscal 1999, we acquired
two companies for the purpose of developing our
capabilities in two important segments of the
home improvement business. Georgia Lighting,
purchased in June 1999, is known throughout the
lighting industry for its expertise in lighting
design, sourcing, merchandising and training
programs. Home Depot and EXPO Design Center
stores are benefiting today from this acquisition in
all four areas.
In January 2000, we acquired Apex Supply
Company, a wholesale distributor of plumbing,
HVAC and related products. Going forward, we
plan to leverage Apex’s expertise and resources to
better serve the needs of professional plumbers
shopping in Home Depot stores.
Exploring E-Commerce
As the world watched the developments of
electronic commerce, we were busy laying the foun-
dation for our own e-commerce efforts. We view the
Internet not as an alternate channel but as an addi-
tional channel to provide flexibility and convenience
to our customers. Therefore, our e-commerce strat-
egy starts with our stores.
Beginning in fiscal 2000, Home Depot customers
in our initial launch markets will be able to purchase
electronically all of the products available in their
local Home Depot store. If they want the products
delivered, we’ll deliver them. If they want to pick
them up at the store, we’ll have the order ready for
them. With nearly 1,000 Home Depot stores spread
across North America, we will have the inventory
and delivery systems instantly in place to serve
e-commerce customers. During this period of
dot-com mania, we firmly believe that, in the long run,
the most successful online retailers will be those
who know how to extend to the Internet the power
of their brands, the leverage of their bricks-and-
mortar assets and the value of their customer service.
Launching New Ventures
Outside the walls of Home Depot, we made great
progress with EXPO Design Center. We opened
seven EXPO Design Center stores during fiscal
1999, and each store opening was more successful
than the one before it. More customers doing
remodeling and decorating projects are attracted
by EXPO’s ability to complete design work, product
1995 1996 1997 1998 1999
Attractive Stockholder Returns Split Adjusted Stock Prices at Fiscal Year-End
$10.03 $11.00
$20.17
$40.33
$55.63