Home Depot 2012 Annual Report Download - page 9

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stores. This version combines the communication features of a phone with the product and inventory lookup features of our
First Phone, but without its complex business analytics and product ordering features. We can now spread the basic
functionality and customer service benefits of the First Phone throughout the store at a lower cost. We also implemented a
new "Store to Store" feature, which allows our associates to look up inventory in other stores, reserve the inventory and
complete the sales transaction for the customer. We continued to take tasking out of the stores so that our associates can focus
on assisting customers. To improve our labor efficiency, we have developed tools for automated, in-aisle inventory
management to replace our former manual, paper-driven processes. As of the end of fiscal 2012, approximately 57% of our
store labor hours were dedicated to customer-facing activity, with a goal of reaching 60% by the end of fiscal 2013.
In fiscal 2012, we continued to automate our special order and installation process to improve transparency and
communication and to simplify the customer experience, and we launched MyInstall on our website, which allows our
customers to schedule appointments and track their projects online. Our recent strategic acquisitions are also aimed at
improving our customers' home improvement experiences. Red Beacon, acquired at the end of fiscal 2011, is a website that
helps our D-I-F-M customers find professionals to help them complete home improvement projects. This acquisition enables
us to deliver on consumer expectations by making it easier to get these projects done; it allows us to help our professional
customers find jobs; and it builds relationships with our customers. We also acquired two companies that provided services to
our customers – a flooring measurement company and a kitchen and bath refacing company. These acquisitions enable us to
strengthen and unify our customers' home services experience under The Home Depot brand.
We help our professional, D-I-Y and D-I-F-M customers finance their projects by offering private label credit products in our
stores through third-party credit providers. In fiscal 2012, our customers opened approximately 2.5 million new The Home
Depot private label credit accounts, and at fiscal year end the total number of The Home Depot active account holders was
approximately 10 million. Private label credit card sales accounted for approximately 22% of sales in fiscal 2012. In addition,
to improve customer convenience at the register, we completed our rollout of PayPal® as an in-store payment option and, in
certain stores, implemented a program for customers to receive an electronic copy of their receipt.
Our Associates. Our associates are key to our customer service initiative. We empower our associates to deliver excellent
customer service through our Customers FIRST training program, and we have a number of Company-sponsored programs to
recognize stores and individual associates for exceptional customer and community service. At the end of fiscal 2012, we
employed approximately 340,000 associates, of whom approximately 21,000 were salaried, with the remainder compensated
on an hourly or temporary basis. To attract and retain qualified personnel, we seek to maintain competitive salary and wage
levels in each market we serve. We measure associate satisfaction regularly and maintain multiple means of ensuring
effective communications with our associates. We believe that our employee relations are very good.
Product Authority
Our Products. Our product portfolio strategy is aimed at delivering innovation, assortment and value. A typical The Home
Depot store stocks approximately 30,000 to 40,000 products during the year, including both national brand name and
proprietary items. We also offer over 600,000 products through our Home Depot and Home Decorators Collection websites.
To enhance our merchandising capabilities, we continued to make improvements to our information technology tools in fiscal
2012 to give our merchants and suppliers greater visibility into category and item performance and to continue to increase the
localized assortment in our stores. We also acquired BlackLocus, Inc., a data analytics and pricing firm, which will bring
additional tools and capabilities to support our merchandising team.
In fiscal 2012, we introduced a number of innovative and distinctive products to our customers at attractive values. Examples
of these new products include the second generation of EcoSmart® LED light bulbs, including the only Daylight Downlight
LED sold in retail; an improved version of Behr® Premium Ultra Interior Paint & Primer in One; appliances from
Electrolux®, Whirlpool® and Frigidaire®; the second generation of Ryobi® lithium battery technology for power tools; a "click
version" of tile with realistic wood looks from TrafficMaster® Allure™; and one inch cellular window blinds under our Home
Decorators Collection brand.
During fiscal 2012, we offered a number of proprietary and exclusive brands across a wide range of departments, such as
Husky® hand tools and tool storage, Defiant® door locks, Everbilt® hardware fasteners, Hampton Bay® lighting and fans,
Vigoro® lawn care products, RIDGID® and Ryobi® power tools and Glacier Bay® bath fixtures. We also introduced the HDX
brand in February 2012, with products in the tools and hardware, storage and cleaning categories. We will continue to assess
strategic alliances and relationships with suppliers and opportunities to expand the range of products available under brand
names that are exclusive to The Home Depot.