Home Depot 2001 Annual Report Download - page 6

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I am immensely proud of these achievements. They’re evidence of the pride,
competitive enthusiasm, and drive of our “orange-blooded”associates. Our corporate
values have also placed the highest emphasis on “giving back” to the communities
in which we live and work. In fiscal 2001, that included:
• Six million volunteer hours including:
- 16 KaBoom playgrounds built and 18 playgrounds refurbished
- 17 Habitat For Humanity®homes built
- 2,000 home repair projects completed in cooperation with Rebuilding Together™
•$20 million in grants to more than 7,500 organizations
Our response to September 11th was proof positive of how thoroughly our values are
engrained in every associate so that we “shine brightest during the darkest hours.” Immediately following the
attacks, our associates staffed our command center to coordinate delivering materials to the New York and
Washington sites.Within hours, Home Depot trucks were on the road with supplies necessary for the rescue and
recovery efforts. All told, as a company and as individuals, we contributed thousands of volunteer hours and more
than $3 million in products, supplies and financial support.
In addition to driving record financial performance, 2001 was a year of driving change within the organization as
we prepare to grow toward $100 billion in revenues. By introducing and implementing a Strategic Operating and
Resource planning process or “SOAR”, we focused the company on expanding our growth horizons. SOAR is a
multi-step process focused on industry and economic data. SOAR allows us to see opportunities that otherwise
might not have appeared, and in 2001 it validated our key initiatives, including:
Service Performance Improvement (SPI) – We implemented SPI across every division between June and October,
the largest single shift in operating practice in Home Depot history. By receiving and processing inventory at
night, SPI makes more hours available for associates to spend with customers during peak selling periods. SPI also
provides us with a platform to improve store appearance, in-stock position, and operating efficiency. Perhaps the
best part of SPI is that our associates can continue to improve their product knowledge and develop better customer
service skills as SPI moves from an initiative to an everyday best practice ... SPI is the way we do business.
Merchandising Reorganization –In September, we centralized our buying function, allowing us to drive purchasing
efficiencies while stores increased their focus on sales and service.We saw immediate improvement in merchandise
assortment, the launch of new promotional activities, and the ability to deliver great values that our customers love.
At the same time, we sustained the strongest field merchandising force in retail, ensuring that our stores maintain
their neighborhood-specific, family-friendly emphasis.
The Pro Initiative –We grew this initiative, which provides specialized products
and services to smaller professional customers, to 535 stores during 2001 and will
maintain that momentum in 2002 by expanding to more than 950 stores. By dedicating
trained staff to better service professional customers, we are attracting a greater
percentage of the professional business, which typically spends $3 for every $1 spent
by our traditional do-it-yourself (DIY) customer.
At-Home Services –We invested in our installation and service businesses to cap-
ture the market opportunity presented by a maturing population that is increasingly
seeking a do-it-for-me (DIFM) solution to home projects. By building on years
of experience in the installation business, The Home Depot is leveraging its brand
to capture a greater share in a fragmented $180 billion marketplace.
In short, 2001 was a year of tremendous change and achievement, which demonstrated
the resilience and capacity of our associates to deliver value to our stockholders, protect our values as a company,
and absorb a host of transformational changes. It was also a year of building for our exciting future.
OPPORTUNITIES FOR FUTURE GROWTH
While The Home Depot’s roots have been and will continue to be in the DIY market, we see vast new opportunities
to increase our business and become the “home aggregator” of the home improvement business. To do that, our
strategy is focused on generating growth in three ways.
We believe our greatest competi-
tive advantage is our people.
Building value...and values with
Habitat for Humanity.