Home Depot (HD) Message Board

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Non-Tech : Home Depot (HD)

HD 336.48

-6.0%

Nov 18 3:59 PM EST

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To: DRL who wrote (69)	10/22/1997 2:44:00 PM
From: MFahsel	Read Replies (1) of 1169

I think that Lowe's is making a huge mistake by going head to head with HD. Look at gross and net margins - HD beats Lowe's in both of these categories. HD also has a lower cost of funds to finance capital improvements. If the two have a price war (god forbid), HD would win! Mobile, AL has both a HD and a Lowe's. Every time I visit my inlaws there I compare the two chains. HD usually has more customers; is better organized and provides better service. The local (Atlanta) paper mentioned a meeting held yesterday between HD and 150 of the company's largest shareholders (representing 28% of outstanding stock). The shareholders were told the following: * 623 stores by end of 1997 (22% increase) * 1,100 stores by 2000 ($44 billion sales/$2 billion profit) * 26% market share by 2000 vs. 14% today * Capture additional market share by expanding reach into repair/remodeling business * Room for as many as 200 EXPO Design Centers vs. 5 today (not by 2000, I hope) * HD plans to tap professional builder market (tough sell unless they can be very flexible) * First store outside of North America to open in Chile (7/98) with two more to follow within 12 months thereafter. Martin

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