Home Depot 2002 Annual Report Download - page 6

followed. The founders of this great Company had a
vision that was right for the market and right for the
times. As our Company has grown and the competitive
environment has changed, so have the challenges we
now face. We have embarked upon a transformation
that will help us take the business to new levels, new
customers, and new markets.
For example, The Home Depot continues to expand
its international operations. We have successfully entered
Mexico, a $12.5 billion home improvement market
opportunity. In just under 18 months, we have established
12 stores and are now the largest home improvement
retailer in Mexico. We are also continuing our success-
ful and profitable growth through our 89 Home Depot
stores in Canada.
During 2002, we made significant investments in
technology, operations, merchandising and our associ-
ates, all of which will contribute to our continued success
in years ahead. In total, nearly $3 billion was reinvested
in our business. Highlights include:
Merchandising
•We made an unprecedented investment in merchan-
dising resets – more in 2002 than in the previous
four years combined. Our ongoing appliance reset,
for example, allowed us to become the country’s
third largest retailer of appliances this year.
•We improved product assortment, giving our customers
the broadest selection of quality merchandise at the
lowest prices. As a result of centralized merchandis-
ing, we were able to identify and remove outdated,
slow-moving merchandise to make room for new,
fashion-forward and innovative products, from both
national and proprietary brands.
Technology
We tripled our investment in information technology to
build better systems, simplify operations and digitize our
business to support future growth.
Advancements include:
•Introduction of the home improvement industry’s first
self-checkout registers to allow customers more control
of their shopping experience.
•Improved network connectivity for new stores and
increased functionality of store systems, ensuring better
in-stock positions and resulting in an 8% increase
in inventory levels on a per-store basis at the end
of the year.
Operations
•We enhanced the shopping experience through
Service Performance Improvement (SPI), where re-
stocking and other activities were moved to night hours,
making our stores more shoppable for customers.
CHAIRMAN’S LETTER
The Home Depot is more than a store. It’s a place full of possibilities that can take our customers from wondering how to knowing how. It’s
a brand our customers have come to rely upon, backed by a commitment they can trust. You can do it. We can helpSM .
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