Home Depot Invests in Customer Service
housing crisis has been particularly tough on home improvement retailers
and the largest, Home Depot, has certainly not been exempt. Back in
January, the chain announced a number of changes including closing its
EXPO business, eliminating 2,000 store support jobs, and slowing the pace
of new store openings.
area where Home Depot has continued to invest has been in the area of store
staff. As a piece by the Financial Times points out, Home Depot
has spent roughly $250 million to fund additional staff hours in stores.
The company has also gone back to what made it successful in the past by
hiring experts to staff departments. Since 2007, the chain has hired more
than 3,000 licensed electricians and plumbers to offer expert service to
downturn is an opportunity … to focus our resources and attention on
the things that matter, and to bring greater customer focus to the business," said
Frank Blake, chairman and chief executive officer of Home Depot.
Martin, head of global consumer products at Ernst & Young, told the Financial
Times, "You can’t just cut costs to succeed. Just doing the day-to-day
cost-cutting is a major contribution, but it won’t give you the answers
the success stories will be based on."
Discussion Question: Will Home Depot’s added
focus on hiring workers with expertise in key departments give it an
advantage during and after the current economic downturn?
- The Home
Depot Exits EXPO Business, Streamlines Support Functions and Reaffirms
Previous Fiscal 2008 Sales and Earnings Guidance – The Home
Depot/ PRNewswire-FirstCall via COMTEX News Network
Depot targets customer service – Financial Times