1978
The Home Depot concept developed and corporation founded by Bernie Marcus and Arthur Blank. (Original company was named "MB Associates.")· 0 Stores
· 20 Associates
· $0 in Sales
1979
· 3 Stores
· 200 Associates
· $7 Million in Sales
1980
· 4 Stores
· 300 Associates
· $22 Million in Sales
1981
First Florida stores opened.
Homer D. Poe, company mascot and cartoon character, appeared in advertising for the first time.
Named High Growth Retailer by Management Horizons.
· 8 Stores
· 700 Associates
· $51 Million in Sales
1982
Board of Directors adopted Employee Stock Purchase Plan.
Named High Performance Retailer by Management Horizons.
· 10 Stores
· 1,100 Associates
· $118 Million in Sales
1983
Computerized checkout systems installed.
First issue of Doings at the Depot, an internal newspaper, rolled off the press.
· 19 Stores
· 2,400 Associates
· $250 Million in Sales
1984
Bowater Home Centers acquired in Dallas, Shreveport, Baton Rouge, and Mobile.
· 31 Stores
· 4,000 Associates
· $430 Million in Sales
1985
Stores operated in 15 markets.
West Coast Division established.
· 50 Stores
· 5,400 Associates
· $700 Million in Sales
1986
First super-sized store opened with 140,000 square feet.
Focus began on pro customer.
· 60 Stores
· 6,600 Associates
· $1 Billion in Sales
1987
UPC scanning system adopted.
Building Better Health Program introduced to promote health and wellness to all associates.
· 75 Stores
· 9,100 Associates
· $1.45 Billion in Sales
1988
Included in Standard & Poor's 500 stock index.
Named Retailer of the Year by Building Supply Home Centers for second time.
Named High Performance Retailer for the seventh consecutive year by Management Horizons.
Satellite communication system implemented.
· 96 Stores
· 13,000 Associates
· $2 Billion in Sales
1989
Northeast Division established.
The Home Depot built its first Habitat for Humanity homes in Atlanta, Dallas, Tampa, and Miami.
· 118 Stores
· 17,500 Associates
· $2.7 Billion in Sales
1990
The Home Depot began Employee Matching Gift Program to support associates' community involvement.
Corporate Contributions exceeded $1.8 million.
· 145 Stores
· 21,500 Associates
· $3.8 Billion in Sales
1991
First EXPO Design Center opened in San Diego.
The Home Depot named Growth Company of the Year by National Association of Investors Corporation.
Olympic Job Opportunities Program established.
· 174 Stores
· 28,000 Associates
· $5.1 Billion in Sales
1992
Corporate charitable contributions reached $4 million.
First Corporate Social Responsibility Report published.
Home Depot customers and associates worked together to help rebuild South Florida after Hurricane Andrew.
· 214 Stores
· 38,900 Associates
· $7.1 Billion in Sales
1993
First Environmental Greenprint for better housing published.
The Home Depot became largest employer of U.S. Olympic athletes.
Environmental Grant Program established.
· 264 Stores
· 50,600 Associates
· $9.2 Billion in Sales
1994
1996 Paralympic Games sponsorship announced.
Expanded into Detroit and Chicago - Midwest Division established.
Second EXPO Design Center opened in Atlanta.
Aikenhead's stores acquired to create Canadian Division.
Announced sponsorship of Canadian Olympic Team and first Canadian Olympic Job Opportunity Program.
First Green (Environmental) Habitat for Humanity house built.
The Home Depot announced Olympic "Adopt-A-Brick" program to build Centennial Olympic Park in Atlanta.
Named Fortune magazine's Most Admired Specialty Retailer.
· 340 Stores
· 67,300 Associates
· $12.5 Billion in Sales
1995
Received Robinson Humphrey Alexander Award for Corporate Citizenship.
Corporate charitable contributions exceeded $8 million.
Teamed up with Discovery Channel and Lynnette Jennings to produce daily home improvement program called HouseSmart(TM).
Named Fortune magazine's Most Admired Specialty Retailer for the second consecutive year.
· 423 Stores
· 80,800 Associates
· $15.5 Billion in Sales
1996
Sponsored the Centennial Olympic Games in Atlanta.
The Home Depot marked 40 quarters, or ten years, of consecutive record financial results.
Southwest Division announced.
The Home Depot passed 500-store milestone, January 16th, near end of fiscal year.
Received the President's Sustainable Development Award, the nation's highest environmental honor.
Named Fortune magazine's Most Admired Specialty Retailer for the third consecutive year.
· 512 Stores
· 98,100 Associates
· $19.5 Billion in Sales
1997
Acquired Maintenance Warehouse.
Entered into joint agreement with S.A.C.I. Falabella to open stores in Chile in 1998.
Purchased National Blinds & Wallpaper Factory, a telephone mail order business.
Stores launched Load N' Go - Home Depot's exclusive truck rental service.
Made a seven-year commitment to the Olympic Games.
Developed the Kids' Workshop to teach building skills and safety.
Received the Vision for America Award from Keep America Beautiful.
Named Fortune magazine's Most Admired Specialty Retailer for the fourth consecutive year.
· 624 Stores
· 124,400 Associates
· $24.2 Billion in Sales
1998
Tool Rental Program rolled out to stores.
Computerized job application process instituted.
Entered Puerto Rican market.
Alliance formed with Emerson Electric to create exclusive line of Ridgid tools for The Home Depot.
Received an "A" rating for its environmental programs from the Council on Economic Priorities.
Received an Award for Excellence in Corporate Community Service from the Points of Light Foundation.
Announced NASCAR partnership with Joe Gibbs Racing.
Named Fortune magazine's Most Admired Specialty Retailer for fifth consecutive year.
· 761 Stores
· 155,000 Associates
· $30.2 Billion in Sales
1999
Built from Scratch published.New environmental wood purchasing policy announced.
Home Depot acquired Georgia Lighting and Apex Supply Company.
Home Depot University launched in the stores.
New customer-driven Web site unveiled.
Stock added to the Dow Jones Industrial Average.
Tony Stewart named 1999 Winston Cup Rookie of the Year.
First store in Hawaii opened.
The Arthur M. Blank Family Foundation and Home Depot contribute $1 million to Zoo Atlanta to provide a home for Chinese pandas Lun Lun and Yang Yang.
Named Fortune magazine's Most Admired Specialty Retailer for the sixth consecutive year.
· 930 Stores
· 201,000 Associates
· $38.4 Billion in Sales
2000
Acquired Apex Supply Company, a wholesale distributor of plumbing, HVAC and other professional products, as a wholly-owned subsidiary of The Home Depot.Announced sponsorship of the Chilean Olympic Team and first Chilean Olympic Job Program.
Introduced Home Improvement Loan Program in all U.S. stores.
Opened Home Depot Floor Store in Plano, Texas.
Expanded international operations by opening first stores in Quebec and Argentina.
Launched first e-commerce online store to Las Vegas customers.
Extended kitchen and bath cabinetry assortment with the introduction of the Thomasville brand.
Appointed Robert L. Nardelli President and Chief Executive Officer.
Named Fortune magazine's Most Admired Specialty Retailer for the seventh consecutive year and 9th Most Admired Company in America.
· 1123 Stores
· 226,000 Associates
· $45.7 Billion in Sales
2001
Acquired Your "other" Warehouse, a plumbing product distributor.Acquired Mexico's TOTAL HOME, a four-store chain of home improvement stores in Mexico, as a wholly-owned subsidiary of The Home Depot.
Opened Doors to AID Recovery Efforts - launched company-wide collection effort with $1 million donation to the United Way.
Expanded online sales nationwide.
Named Fortune magazine's Most Admired Specialty Retailer for the eighth consecutive year and sixth Most Admired Company in America for the second consecutive year.
· 1319 Stores
· 251,488 Associates
· $53.6 Billion in Sales
Copyright 2002 LexisNexis Academic & Library Solutions. All rights reserved.
US-Regional Newsline
Copyright 2002 Winston-Salem Journal
Winston-Salem Journal
September 16, 2002Online Edition
ACC-NO: WSJ2002091602
LENGTH: 1842 words
HEADLINE:
Heads or Tails?; Lowe's and Home Depot, often neighbors, struggle to develop some individuality
BYLINE: Louis, Brian
BODY:
In the battle between the nation's two largest home-improvement retailers, there's a simple question for customers looking for a lawn mower or a grill - orange or blue? Orange means Home Depot, which is in the lead. Blue means Lowe's, which is in second place but has become more favored in the investment community. They are fighting over the $200 billion that Americans spend each year on home improvements, tools and lumber.
The companies are all over the television. Their circulars are a regular in the Sunday paper. Their stores are frequently within sight of each other, as they are along Hanes Mall Boulevard and University Parkway. Despite all this advertising and promotion, it's often difficult for consumers to see the difference between the two chains. They tout the same things when talking about what distinguishes them from their rival -customer service, exclusive products, low prices.
The stores are similar, so why do people pick one over the other? The reasons vary, according to recent interviews with customers at the stores, which sit across from each other on Hanes Mall Boulevard in Winston-Salem. Some shoppers cite product availability and price. Others choose a store because it alone carries a brand they like. Some have grudges against one store or the other because of a bad experience.
Sometimes, it just boils down to which side of the road shoppers are driving on. Easy right-hand turns nto a store, depending on which way they're going on Hanes Mall Boulevard, is a factor cited by several people when asked why they pick Lowe's or Home Depot.
Larry Campbell shops at Lowe's because it is based nearby in Wilkesboro. Campbell, of Mocksville, recently bought some lighting and garden supplies at Lowe's. He said that "95 percent of the time" he shops there because it's a local company. He also said he likes the service he gets at Lowe's.
Other consumers don't have a preference.
"It depends on what I want," said a Winston-Salem retiree shopping at Home Depot. He bought some lime for his lawn. Home Depot sells the lime that he prefers, he said. "I know this works," the shopper said. "If it's not broke, don't fix it."
That's not to say that he is anti-Lowe's. He said he has a credit card for both stores and shops at both.
A couple shopping at Home Depot said they didn't prefer one store over the other; deciding where to shop is based on availability and price, they said. If one store doesn't have what they want, they cross the street to see if the other store does, they said.
"They're both pretty good stores," one of them said.
Karen Henry Clark said she likes the service she gets at Home Depot. She and her husband, Cliff, are redoing the entire back end of their house and are doing all of their shopping for the project, including working with designers, at Home Depot. She said that the customer service at Home Depot is better than at Lowe's.
"I find these people are more personable," she said, and the employees at Home Depot "seem to be more accessible."
Among the analysts who don't see much difference between the stores is Steven Baumgarten of Parker/Hunter Inc., a brokerage company based in Pittsburgh.
"I think both stores are pretty similar," Baumgarten said. He owns stock in Home Depot Inc. but not Lowe's Cos. Inc. His company has not done any investment banking for Home Depot or Lowe's. He has a buy rating on both stocks.
An analyst with the same view is Mike Porter of Morningstar, a stock and mutual-fund research company based in Chicago.
"They're very similar in terms of layout and what you can get there," Porter said. He does not own shares in Home Depot or Lowe's and his company does not provide investment-banking services. Porter has a three-star rating on Lowe's and a four-star rating on Home Depot. Morningstar's highest rating is five stars.
Home Depot was founded in 1978 and is based in Atlanta. It is clearly the giant in the home-improvement retailing industry. It leads in the number of stores and in sales and profit. It had 1,437 stores in the United States, Canada and Mexico at the end of the second quarter. In 2001, it posted sales of $53.6 billion and a profit of $3 billion.
Lowe's had 806 stores - all in the United States - at the end of the second quarter. In 2001, Lowe's had sales of $22.1 billion and a profit of $1 billion.
Home Depot has about 300,000 employees. Lowe's has about 110,000.
Because Home Depot is so large, it doesn't have much room left for expanding its big-box retailing into new markets in the United States, analysts say. To find ways to generate more sales outside its big-box format, it has started experimenting with specialty stores. For example, in the Atlanta area in late August the company opened its first Home Depot Landscape Supply store. It caters to professional landscapers as well as do-it-yourself gardeners.
Lowe's doesn't have a sales-growth problem because it still has a lot of room to expand across the country.
Even though the two companies have many similarities, they also have differences, some obvious and some subtle, analysts say. Each is always trying to differentiate itself from the other to attract customers.
Baumgarten said that appliance sales is probably the biggest difference between the two companies.
Lowe's is the No. 2 seller of appliances - washers, dryers, and refrigerators, to name a few - behind Sears, Roebuck & Co. Lowe's had 12.9 percent of the appliance market at the end of the second quarter. Appliance sales accounted for the biggest portion of sales at Lowe's in fiscal 2001 - $2.5 billion, or 11 percent of the company's $22.1 billion sales.
Lowe's stores stock a wide selection of appliances, both big and small.
"We have over 250 models on the floor in stock to take home today," said Chris Ahearn, a Lowe's spokeswoman.