Home Depot 2007 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2007 Home Depot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 91

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91

Products.
A typical Home Depot store stocks 35,000 to 45,000 products during the year, including both national brand name and proprietary
items. The following table shows the percentage of Net Sales of each major product group (and related services) for each of the last three fiscal
years:
In fiscal 2007, we focused on driving merchandising fundamentals and continuing to deliver innovative and distinctive products. Key areas of
success included:
•
Percentage of Net Sales for
Fiscal Year Ended
Product Group
February 3,
2008
January 28,
2007
January 29,
2006
Plumbing, electrical and kitchen
31.0
%
30.8
%
29.4
%
Hardware and seasonal
28.0
27.0
27.1
Building materials, lumber and millwork
22.3
23.6
24.2
Paint and flooring
18.7
18.6
19.3
Total
100.0
%
100.0
%
100.0
%
Introducing new technology in great products like Behr paint with nano-guard which eliminates the need for priming in exterior
painting and Shark Bite pipe fittings which takes welding out of the pipe connection process in plumbing;
• Launching environmentally friendly Eco Options
SM
products across many categories, including compact fluorescent bulbs,
cleaning products and natural live goods; and
•
Remaining focused on affordable luxury by introducing new products in Hampton Bay Patio, Charmglow grills, GE CleanSteel™
appliances, LG Kitchen Series, TrafficMaster Allure resilient flooring and Shaw Highstakes carpet.
To complement and enhance our product selection, we have formed strategic alliances and exclusive relationships with selected suppliers to
market products under a variety of well-recognized brand names. During fiscal 2007, we offered a number of proprietary and exclusive brands
across a wide range of departments including, but not limited to, Behr Premium Plus® paint, Charmglow® gas grills, Hampton Bay® lighting,
Vigoro® lawn care products, Husky® hand tools, RIDGID® and Ryobi® power tools, Pegasus® faucets, Traffic Master® carpet, Glacier Bay®
bath fixtures and Veranda® decking products. We may consider additional strategic alliances and relationships with other suppliers and will
continue to assess opportunities to expand the range of products available under brand names that are exclusive to The Home Depot.
From our Store Support Center we maintain a global sourcing merchandise program to source high-quality products directly from manufacturers
around the world. Our Product Development Merchants travel internationally in order to identify and purchase market leading innovative
products directly for our stores. Additionally, we have four sourcing offices located in the Chinese cities of Shanghai, Shenzhen, Dalian and
Chengdu, and offices in Gurgaon, India; Milan, Italy; Monterrey, Mexico and Toronto, Canada. In addition to our global sourcing teams, we also
have quality assurance and engineer teams who ensure that the products we source (globally or domestic) comply with federal, state and local
standards.
Services.
Our stores offer a variety of installation services. These services target D-I-F-M customers who select and purchase products and
installation of those products from us. These installation programs include products such as carpeting, flooring, cabinets, countertops and water
heaters. In addition, we provide professional installation of a number of products sold through our in-home sales programs, such as generators
and furnace and central air systems.
3