The Home Depot
Country
United States
Sector
Retail
Offices
-
Employees
-
Brand value
$20,902m
Brand rating
AA-
Enterprise value
$62,521m
Value / market cap
33.4%
This brand has received no votes.
Market cap
* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.
Performance of the brand
The Home Depot Inc. is the world’s largest home improvement specialty retailer, as well as the fourth largest retailer in the U.S. with 1,973 retail stores in the United States (including Puerto Rico and the U.S. Virgin Islands), 180 stores in Canada, 85 stores in Mexico and 7 stores in China. Since its foundation in 1978, the retailer’s headquarter remains in Atlanta, U.S., overseeing a total of 300,000 associates globally. The store inventory consists of up to 40,000 different kinds of building materials, home improvement supplies, appliances and lawn and garden products. In 2011, The Home Depot was ranked 30th on the Fortune 500 U.S. list.
In the first quarter of 2011, The Home Depot faced a 0.2% decrease in revenues compared to Q1 2010 but managed to maintain its AA- rating in 2011. The brand value of The Home Depot decreased by $1,448m in 2011 to $18,975m. At the same time, enterprise value has fallen to $57,648m.
Positive Aspects
In 2010, The Home Depot announced a goal of cutting energy use in its stores by another 5% by 2015, resulting in a reduction of 20% since 2004. It also pledged to remove 20% of greenhouse gas emissions from its domestic supply chain by 2015.
In order to reach this goal, the Home Depot announced one of the single largest retailer host solar programs in 2010, installing solar panels on 62 of its North American store locations. In addition, the retailer planted thousands of trees at its headquarters in Atlanta to offset carbon emissions. In 2007, The Home Depot Foundation committed to invest $100 million over the next decade to build over 100,000 green affordable homes and plant three million trees. Besides cutting energy use, it focuses on offering conservation-minded and environmentally-friendly products to its customers giving them the choice to choose innovative “green” products.
Since its formation in 2002, The Home Depot Foundation has granted more than $270 million to non-profit organizations improving homes and lives in local communities.
Through The Home Depot Foundation and its ongoing partnerships with non-profit organizations, the Home Depot reaches out to the communities where its associates live and work providing philanthropic and volunteer support. Those programs bring together volunteerism, do-it-yourself expertise, product donations and monetary grants to meet critical needs and build affordable communities. The Home Depot provides opportunities for associates, suppliers and community members to contribute their time, talent and resources while creating meaningful impact through Team Depot, an associate-led volunteer program. The retailer is also a member of the American Red Cross Annual Disaster Giving Program (ADGP). The Company’s $500,000 contribution to the ADGP each year enables the Red Cross to respond immediately to the needs of individuals and families affected by disaster anywhere in the United States.
Negative Aspects
In 2007, The Home Depot was involved in a corruption scandal caused by four purchasing managers, allegedly taking kickbacks totalling millions of dollars.
The managers were accused by a whistleblower of taking bribes worth millions of dollars. In exchange for the payoffs, the managers arranged for The Home Depot to stock tiles and other flooring products from Asia. However, The Home Depot took immediate actions by terminating the accused lower-level managers for not following company ethics and business conduct.
In June 2011, The Home Depot has been accused of using China products in its ‘Buy American’ campaign.
The retailer is being investigated by the U.S. Department of Justice for violating the Buy American Act because it provided Chinese-made materials for public projects. The law requires all materials used in construction of public projects originate in the U.S., unless there is an identical product available for a cheaper price.
Last changed September 1, 2011
League tables
The Home Depot appears in the following brand league tables:
Rank 3 in the
Best Retail Brands 2012.
Rank 23 in the
Global 500 2012.
Rank 22 in the
Global 500 2011.
Rank 3 in the
Best Retail Brands 2011.
Rank 22 in the
Global 500 2011.
Rank 22 in the
Global 500 2010.
Rank 24 in the
Global 500 2009.
Rank 35 in the
Global 500 2008.
Rank 35 in the
Global 250 2007.
2012 brand performance*
Brand value
$20,902m
Brand rating
AA-
Enterprise value
$62,521m
Value / ent. value
33.4%
* Figures taken on 31st December 2011.
2011 brand performance*
Brand value
$20,423m
Brand rating
AA-
Enterprise value
$60,527m
Value / ent. value
33.7%
* Figures taken on 31st December 2010.
2010 brand performance*
Brand value
$19,013m
Brand rating
AA-
Enterprise value
$54,337m
Value / ent. value
35.0%
* Figures taken on 31st December 2009.
2009 brand performance*
Brand value
$14,310m
Brand rating
A+
Enterprise value
-
Value / ent. value
-
* Figures taken on 31st December 2008.
Mission statement
The Board of Directors of The Home Depot, Inc. is committed to maximizing long term shareholder value while supporting management in the business and operations of the Company, observing the highest ethical standards and adhering to the laws of the jurisdictions within which the Company operates.
The Home Depot is still guided today by those values established by its founders: excellent customer service, taking care of people, entrepreneurial spirit, respect for all people, building strong relationships, doing the right thing, giving back to communities, and creating shareholder value. The founders viewed the structure of the company as an inverted pyramid, with stores and customers at the top and senior management on the bottom.
Company history
The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia. The first stores, at around 60,000 square feet each, were cavernous warehouses that dwarfed the competition and stocked 25,000 SKUs, much more than the average hardware store at that time. Empty boxes piled high on the shelves gave the illusion of even more product.
From the start, associates were able to offer the best customer service in the industry, guiding customers through projects such as laying tile, changing a fill valve or handling a power tool. Not only did store associates undergo rigorous product knowledge training, but they also began offering clinics so customers could learn how to do it themselves. The Home Depot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money.
According to Bernie and Arthur, the customer has a bill of rights at The Home Depot, and this entitles the customer to the right assortment, quantities and price, along with trained associates on the sales floor who want to take care of customers. Their philosophy of customer service – “whatever it takes” – means cultivating a relationship with customers rather than merely completing a transaction. As Bernie says in Built from Scratch, “At the end of the day, we’re in the people business.”
Geography and products
Headquarters: Cobb County, Georgia, USA
The Home Depot® is the world's largest home improvement specialty retailer, with more than 2,200 retail stores in the United States, Puerto Rico, the territories of the U.S. Virgin Islands and Guam, Canada, Mexico and China. As of the end of the first quarter of 2011, its 272 international operations represent 12.1 percent of its store base.
The Company is already the largest home improvement retailer in Mexico, in addition to the U.S. The Home Depot entered Canada in 1994 and Mexico in 2001 through a combination of acquisitions and organic growth. Both markets are examples of how The Home Depot combines its vast knowledge of the home improvement industry with the needs, shopping trends and customs of each unique geography to best serve customers. In December 2006, The Home Depot acquired The Home Way, China’s first “big box” home improvement retail chain.
Hi-res logo
Strapline
In March 2009, the slogan 'More Saving. More Doing.' was introduced to replace the old 'You can do it. We can help.' which had been in use since 2003.
Advertising
Sponsorships
The Home Depot is a corporate partner and sponsor to a number of sports programs. The retailer is the primary sponsor of the #20 Home Depot Racing team and is also the title sponsor for the sixth consecutive year of “NASCAR RaceDay Built By The Home Depot,” SPEED’s weekly, live pre-race show. Additionally, The Home Depot sponsors five MLS teams – New York Red Bulls, Los Angeles Galaxy, Seattle Sounders FC, Houston Dynamo and Chivas USA. In 2011, The Home Depot will also become the “Official Home Improvement Sponsor” of the CONCACAF Gold Cup Tournament. The sponsorships provide The Home Depot with great local and global media coverage, increasing brand awareness all over the globe.
Key people
Frank Blake - Chairman and CEO
Matt Carey - CIO and Executive Vice President
Carol Tome - CFO and Executive Vice President - Corporate Services
