Data Depot - ' Home Depot Base Case' (
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Headquarters: 2455 Paces Ferry Road, Atlanta, GA 30339
Phone: (770) 433-8211
Business: Home improvement retailer focused on do-it-yourself customers and contractors. Company also offers installation services.
Chief Information Officer: Robert DeRodes
Financials in 2002: $58.25 billion in revenue, $3.66 billion in net income, net profit margin 6.3%.
Challenge: Update inventory tracking systems for the sales floor and behind the scenes. Remodel stores to better compete with rival Lowe's Home Improvement. Centralize operations to improve efficiency.
Baseline Goals:
Grow sales at existing stores by 1% a year, while opening new stores nearby.Install automated checkout systems in 800 stores.Keep at least 99% of products on shelves all the time.Maintain sales per store at $40 million a year or better, stemming three-year slide.
HOME DEPOT
Net Income Per Year: $3.66 billion
Operating Profit Per Store: $3.8 million
Average Customer Purchase: $51.29
Inventory Turns Per Year: 5.1
LOWE'S
Net Income Per Year: $1.47 billion
Operating Profit Per Store: $2.76 million
Average Customer Purchase: $58.26
Inventory Turns Per Year: 4.5
SOURCE: CIBC WORLD MARKETS