Home Depot 2001 Annual Report Download - page 7

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Enhancing the core business –By focusing on improving store productivity, we can grow comparable sales and
leverage operating efficiencies.We are investing in “game-changing”opportunities, for example, by tripling our
investment in new systems initiatives, by applying Six Sigma business process improvement practices across the
enterprise, and by rolling out efficient crossdock transit facilities.We will also build on our merchandising success
by enriching the vitality and velocity of our inventory through programs that identify opportunities like energy
conservation, environmentally-friendly products, and home security.
Extending the business – In 2002, The Home Depot will add 200 new stores in a variety of formats and sizes, reflecting
customer demographics, buying preferences, and geography.We will also reach for new relationships with homebuilders
and commercial and industrial customers through initiatives like Home Depot Supply and its “pro”stores. Home Depot
Supply is our first step in realizing the business-to-business selling opportunity available to The Home Depot.
Expanding the business –In 2001, The Home Depot expanded its business with the acquisition of Your “other”
Warehouse, a Louisiana-based specialty plumbing fixtures company that supports our stores in the special order
plumbing and accessory areas. Customer response to these enhanced assortments and delivery has been very
strong and we continue to be excited about potential expansion across other product lines.
We also entered Mexico through the acquisition of TotalHOME, the second largest home improvement retailer in that
country. In March 2002, we announced plans to acquire the four-store Del Norte home improvement chain and build
two additional Home Depot stores, which further consolidates our position in the $12.5 billion home improvement
market in Mexico.
By analyzing and identifying ever-increasing concentric rings of market opportunity, we can continue to develop
new products, services, and markets, both in this country and globally.
SETTING THE HIGHEST STANDARDS
Leadership means holding ourselves to the highest business standards. During 2001,
we completed a comprehensive review of our business to ensure that across every
operation and in every functional area, The Home Depot is complying with not only
the letter, but the spirit of the law.
INVESTING IN OUR PEOPLE
We believe our greatest competitive advantage is our people. That’s why in 2001,
we launched human resources initiatives designed to attract, motivate, and retain the
best employees in the industry. Through new learning programs for associates and
leadership development of district and store managers, we will increasingly shift our
store management focus from “operating a box”to “managing a business.”
Every Home Depot associate received a special lesson in leadership this year from
our Olympic Job Opportunity Program (OJOP) athletes who competed in the 2002
Olympic and Paralympic Winter Games. I’m sure you share our pride in our orange-
blooded athletes, who brought home eight medals, and agree that expanding our unique commitment to this program
from 140 to 204 OJOP associates for the 2004 games is a great way to sustain and develop leadership in our stores.
LEADERSHIP TRANSITION
I can’t thank Bernie Marcus enough for his support and guidance during this management transition.Without
question, it has been extraordinarily smooth. Bernie has been both constructive and instructive, and I am grateful for
his enormous support, his coaching, and his confidence in our management team to lead this great organization.
In closing, let me reiterate how excited I am about the future of The Home Depot.We have arguably the healthiest balance
sheet in retailing and an enviable brand that offers tremendous opportunity for future growth. Our commitment to
you, and to ourselves, is always to be the best, and improve what we do every day.
Sincerely,
Bob Nardelli
Chairman, President & Chief Executive Officer
With thousands of volunteer
hours and millions of donations,
we showed our heart in the
wake of September 11th.