Home Depot 2000 Annual Report Download - page 6

We have the most recognizable brand in home improvement, which gives us the power to extend our Home
Depot success into formats that are complementary to our core business. We grew our EXPO Design Center
concept from 15 to 26 stores during fiscal 2000 and anticipate continued strong expansion in 2001. We are
also testing new store concepts such as Villager’s Hardware, with four stores in New Jersey, and a Home Depot
Floor Store in Plano, Texas, which we launched in mid-year to such success that we had to slow advertising to
keep up with customer response.
Five Business Imperatives for Fiscal 2001 All of our future plans are supported by five key business imperatives:
customer service and loyalty; innovation and entrepreneurship; merchandising and advertising excellence; oper-
ational efficiency and competitive leadership; and talent and leadership development.
All of these imperatives are important, but the last is both critical and too frequently overlooked in the corporate
world. As we grow, the unique Home Depot culture and values must be passed on to an increasing number of
diverse orange-aproned associates. Therefore, we are committed to enhancing training throughout the organi-
zation and developing more focused accountability in clearly defined business units. Sharing ideas through elec-
tronic communication will be important to this process. Our structure, the processes we are putting in place and
our people all support our strategy. Coupled with these imperatives, we have the roadmap for success.
Despite a slower economic environment, all the elements for growth are in place. It is up to us to broaden our
business base so that we are more resistant to economic shifts and to offer a full array of products and services to
a wider range of customers. I am challenging our organization to continue the pace of creativity and change that
has made us so successful to date. We know where we want to go and we are determined to get there.
Even with our rapid growth in the past two decades, we have less than a 10% share of home improvement and
building materials industry sales today. Our strategy for future market share growth begins with a metamarket
view of the business, which includes broadening our reach in the industry, identifying new customer segments,
analyzing their home improvement needs and gaining an increasingly larger percentage of their expenditures.
Whether in opening new stores, adding volume to existing stores or extending the brand globally and through new
platforms, The Home Depot is in the strongest position in the industry for continued growth in the coming years.
Special Thanks I want to express a special thank you to Bernie, Arthur and the Board of Directors for their
support through this initial transition, and particularly to Arthur as he retires as Co-Chairman to pursue new
endeavors. I am grateful for their confidence in my ability to take over the reins of the company they created
and nurtured into a retailing legend, and I am committed to taking The Home Depot to the next level.
I hope you share my excitement for the future prospects of our Company.
Sincerely,
“this is a company with great opportunities to continue to gain market share.”
Robert L. Nardelli
President and Chief Executive Officer
February 19, 2001