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To: Earlie who wrote (60105)	1/20/2001 3:07:07 PM
From: AllansAlias	Read Replies (1) \| Respond to of 436258

I've mentioned this before about HD. Unlike you, I see it as more of a leading indicator. I think it far more likely that the new bathroom or finishing the basement is among the first level of discretionary spending to disappear when things get tight. They still have to buy the sorts of necessities and near-necessities that are sold by the Wal-Marts.

To: Earlie who wrote (60105)	1/21/2001 9:59:20 AM
From: flatsville	Read Replies (1) \| Respond to of 436258

It's also refreshijng to see some honesty in reporting. Honesty in reporting? It was certainly that. But, geez these guys sound like they've been hittin' on the kool-aid. biz.yahoo.com ...``We're clearly facing a harsh and rapidly downward-spiraling economic environment,'' Bob Nardelli, Home Depot's new president and chief executive, told analysts in a conference call. Sales have been crimped by cold weather, rising energy costs, growing consumer debt, investment losses and higher interest rates, he said. Lower stock prices have eliminated $3.7 trillion from equities markets in recent months, causing many people to curb their spending, he said. ``All of these things are certainly causing the consumer to think hard and make a much more informed decision on how they'll spend their dollars,'' Nardelli said.... Alan may have a point reading HD's slowdown as a leading indicator at this point in time. But, I'd argue that there's a change in spending trends under way as well. I've had the experience of walking into a home improvement store time and again and seeing women out number men...weekend and weekdays. I know women who'd much rather spend a few hours at HD than at the Mall and then drop $200-300 while they're there. They see HD spending not as discretionary, but as necessary because their priorities and spending habits have changed...IOW Baby Boomer women and even younger home-owning women. If they can't afford HD they might not spend those dollars on Wal-Mart type items as a "substitute." The very fact that the big orange box and other home improvement stores exist have changed spending habits. The concept of discretionary v. necessity has changed from a new blouse to a closet organizer...from a spring coat to "steel studs."