Home Depot 2003 Annual Report Download - page 4

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mix and broader selection of merchandise that is stylish and has
more features for the value. “We’re America’s Largest Tool Box”SM
with the broadest selection available in home improvement.
Alongside these enhancements is an unprecedented investment in
technology. We have made major progress in improving the cus-
tomer’s total shopping experience – through industry firsts such as
self checkout. Self checkout is now installed in close to 800 stores,
represents more than one-third of transactions in those stores and is
receiving very positive customer feedback. During 2003, we also
introduced a new touchscreen point-of-sale system and cordless
scan guns, and upgraded technology infrastructure by installing
more than 5,000 miles of cable and 90,000 new devices. These tech-
nological enhancements are reducing queue times at the checkout
and allowing our associates to focus more on customer service.
Extending the Business
New stores, new formats and new businesses will further our
growth. In fiscal 2003, we opened 175 new stores and plan to open
another 175 in 2004, resulting in 200 million square feet of retail
selling space. We believe our breadth of merchandise, wide geo-
graphic reach and associates are our competitive advantage.
Through our services business, we are positioned to capitalize on
demographic shifts that are creating customers who want home
improvement “done for them.” Home Depot stores offer a variety of
installation programs, ranging from countertops and kitchens to
fencing and HVAC. We currently handle more than 10,000 projects
each business day and expect this business to continue its double-
digit growth rate.
Expanding Our Markets
Unified under one brand, The Home Depot Supply, we are defining
and developing new channels to reach the growing professional
market. We are utilizing our existing assets to spread our core
competencies into areas such as maintenance repair operations
and homebuilders. In fiscal 2003, we received GSA certification,
making us the only federally approved government contractor in
home improvement, and we now have an opportunity to provide
value and selection to government agencies and military bases.
Reaching beyond our U.S. borders, we are successfully expanding
our business. In Canada, we ended the year with more than 100
stores and plan to add 14 more stores in fiscal 2004. Since our
recent entry into Mexico in 2001, we have more than tripled our
store base in this growing market to 18 stores.
Building Value – Sharing Values
Our responsibilities extend to a broad range of constituents. In addition
to building value for our customers, suppliers, shareholders and asso-
ciates, we are also passionate about sharing our values.
When The Home Depot moves into a community, we make great
things happen. Beyond the physical investment of a store, we pro-
vide careers, we give back through volunteerism, we add to the local
tax base and we help our customers to maintain and enhance their
single biggest asset – their home.
During fiscal 2003, our Team Depot volunteers contributed millions
of hours of sweat equity to a variety of important projects. We
launched Project Homefront in April 2003, as part of our commit-
ment to aid the families of deployed military personnel with home
maintenance and repair needs. So far, we have aided in the repair
of almost 1,000 military families’ homes. The Home Depot is also
there to assist when our communities need us most. Our disaster
relief volunteers planted thousands of trees to help communities
recover from the effects of the wildfires and were on the scene to
aid communities impacted by power blackouts and hurricanes. We
also built 52 KaBOOM! playgrounds and 10 Habitat for Humanity
homes across North America. These efforts demonstrate our con-
tinued commitment to giving back to our communities.
The Year Ahead – Positioned for Future Growth
We are committed to building sustained, profitable growth for
The Home Depot and our shareholders. Our strategy remains
unchanged, is delivering record performance and will allow us to
pursue future growth opportunities. We believe we are well posi-
tioned to capitalize on the opportunities in the exciting and grow-
ing home improvement market. The home, more than ever, is our
customers’ most important asset and their family’s sanctuary. We
will continue to find ways to serve this market by enhancing our
core, extending our business and expanding our markets.
We are the leader in a growing and healthy industry, investing
heavily in our future through store modernization and technology,
distinctive and innovative merchandise, and our talented and
dedicated associates.
As we prepare to celebrate our 25th anniversary, we look back to
the first store opening on June 22, 1979. In that first year, The
Home Depot had 200 associates and sales of $7million. We have
grown to become the second largest retailer in North America and
the youngest ever to reach over $60 billion in revenue. With more
than 1,700 stores, 300,000 associates and more than $1.25 bil-
lion in sales per week, we have a tremendously proud past and an
even brighter future.
BOB NARDELLI
Chairman, President and Chief Executive Officer
March 29, 2004
Chairman’s Letter