Renovation Means Revenues for Home Depot

Sep 29, 2004

By George Anderson

Robert Nardelli, Home Depot’s president and chief executive, loves old houses — especially those in need of renovation.

Mr. Nardelli and company are riding high on a construction boom, reports the Chicago Sun-Times, spurred on, in part, by consumers’ “fascination with upgrading older housing.”

Home Depot has actively sought to capture this business and has followed it to urban centers where much of older home renovations are being done.

The chain currently operates stores inside major urban centers including New York, Chicago, Detroit and Washington, D.C.

Because of space restrictions and demographic realities, Home Depot’s urban units are often very different from its suburban stores. Urban stores are often set up on multiple floors and, in places such as New York City, may not have a dedicated parking lot for customers.

Moderator’s Comment: How has the phenomenon of urban neighborhoods being reclaimed and reinvigorated made an impact on retailing beyond home improvement
retailers such as Home Depot? Will we continue to see a reverse migration of consumers from suburbia to urban centers?

Recently published medical studies have linked obesity to suburban living. The theory is simple. In the suburbs, people drive cars to get just about everywhere.
In cities, they walk.

George Anderson – Moderator

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