Home Depot 2005 Annual Report Download - page 14

provides a wide range of water and wastewater transmission products through 137 branches in 36
states. Apex Supply is a wholesale supplier of plumbing, HVAC, appliances and other related
professional products with 25 locations in the Southeast. MRO also distributes its products
through 20 distribution centers located in 14 states.
•Builder provides products and arranges installation services for production home builders
through 37 locations in 14 states. Builder also includes Williams Bros. Lumber Company, LLC, a
supplier of lumber and building materials to home builders through 16 branches in Georgia.
•Professional Supply includes various brands, such as White Cap Construction and Contractors’
Warehouse. White Cap Construction distributes specialty hardware, tools and materials to
construction contractors through 103 branches in 23 states. Contractors’ Warehouse caters to
small contractors and remodeling tradesmen through eight retail stores located in California.
In January 2006, we entered into a definitive merger agreement to acquire Hughes Supply, a leading
distributor of construction, repair and maintenance products, for aggregate consideration of
approximately $3.5 billion. Upon closing, Hughes Supply will be part of Home Depot Supply.
The Home Depot, Inc. is a Delaware corporation that was incorporated in 1978. Our Store Support
Center (corporate office) is located at 2455 Paces Ferry Road, N.W., Atlanta, Georgia 30339. Our
telephone number is [phone].
We maintain an Internet website at www.homedepot.com. We make available on our website, free of
charge, our Annual Reports to shareholders, Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K, Proxy Statements and Forms 3, 4 and 5 as soon as
reasonably practicable after filing such documents with, or furnishing such documents to, the Securities
and Exchange Commission.
We have included our website addresses throughout this filing only as textual references. The
information contained on our websites is not incorporated by reference into this Form 10-K.
Retail Businesses
The Home Depot Stores
Operating Strategy. Our operating strategy is to offer a broad assortment of high-quality merchandise
and services at competitive prices using knowledgeable, service-oriented personnel and strong
marketing and credit promotions. We believe that our associates’ knowledge of products and home
improvement techniques and applications is very important to our marketing approach and our ability
to maintain and enhance customer satisfaction.
Customers. The Home Depot stores serve three primary customer groups:
•Do-It-Yourself (‘‘D-I-Y’’) Customers: These customers are typically home owners who purchase
products and complete their own projects and installations. To complement the expertise of our
associates, The Home Depot stores offer ‘‘how-to’’ clinics taught by associates and merchandise
vendors.
•Do-It-For-Me (‘‘D-I-F-M’’) Customers: These customers are typically home owners who purchase
materials themselves and hire third parties to complete the project and/or installation. We
arrange for the installation of a variety of The Home Depot products through qualified
independent contractors.
•Professional Customers: These customers are professional remodelers, general contractors,
repairmen and tradesmen. In many stores, we offer a variety of programs to these customers,
including additional delivery and will-call services, dedicated staff, extensive merchandise
selections and expanded credit programs, all of which we believe increase sales to this group.
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