The End is Near for Home Depot

[DUNBAR]

I just heard over the radio of some disappointing news and there's no way anyone can state that downsizing is a good thing.



16 Home Depot stores will be shutting down soon in upper parts of Ohio,


All current plans of building new Home Depots in the Northern Kentucky/Greater Cincinnati area have been cancelled or withdrawn.



I've known that Home Depot when you visit their locations over the past 8-12 months that the building had an eerie quiet to it; lack of sales.

Lowe's is not only holding steady, but in the hiring mode as they've been for quite some time and the upper management of Home Depot associates have been slowly trickling over to Lowes in my area.


Now it is understood why Tony Stewart recently announced that he's wanting to "shop around" for a new crib outside of Joe Gibbs Racing. If that major sponsor is taking a tumble here soon, he definitely wants out of that sinking ship and quick.


There are 2 home depots out of 3 that have suffered greatly since their opening with one of the 3 being the front runner. The main income producing HD in my area a few months ago asked the employees to start parking their vehicles in the customer parking spots to give the appearance that the store was busy.


A quick walk into the building with only a scarce few associates in the area you walk in, eagerly awaiting to help you is a far distant change from years ago when it was so busy you couldn't find anyone to help.


I understand the relationship Ridgid has with HD and the like with products and I hope this thread isn't in bad taste for notification. It's a reality that sooner or later it's going to be a matter of public knowledge known around the world.


I'd say the only way there'd be a chance of saving grace for this company would be for major catastrophe in the lines of earthquake/tornados/wind or fire that would create a jump in sales to rebuild the devastation. This would have to cover a great distance, not a small area. I certainly wouldn't wish this on anyone but that seems like the most logical ability to smother the flames of a huge fire that's been set.


I just heard this on 700WLW in my listening area and it was an AP (associated press report) so I believe it to be true.


I need to sell a kidney or possibly body fluids to start accumulating a reserve of money for the deals that may come out of this. I might own ridgid stock just by how many tools I end up with their name on it!

My cup is ready nurse! :happydance:

[Frankiarmz]

I sure hope there is another way to prevent these stores from closing down. Maybe if the folks in charge of our country can figure out a way to resolve the oil crisis, bring back some jobs, stop the war and a few other things that could help our economy, people would start spending money again at H/D? Only a couple weeks ago Truckers were protesting how the high cost of diesel was making their jobs worthless since they were working just to fill their tanks. We can expect that as prices at the pump go higher we will hear worse News. Folks will continue to cutback on spending and more and more industries will feel the effect. There is already talk of another "Stimulus" payout in the future. I guess they figured out this one will be going straight to paying off bills? I just had my heating oil raised to $4.00 a gallon and that was a bargain from the $4.39 some folks are paying. I won't be going to H/D unless it is an emergency.:sad:

[chrisexv6]

The article Ive seen/read says its 15 stores, not concentrated in any one area (list here: http://consumerist.com/5007487/home-depot-closing-15-stores)

Not really sure its the beginning of the end, they are just closing slow stores. If you read the comments some people are even confused as to which store because there are a few locations so close to each other in one of the towns.

I think HD is being smart.......there are some spots where they are TOO close to each other. No sense having 2 or 3 gigantic stores within a couple miles of each other.

No offense to HD though, Im liking Lowes better. They opened a new store nearby (albeit further than HD is from me) but they are nicer, stock more items, and seem to have better quality (lumber especially). HD still beats Lowes on tools though, Kobalt cant stand up to Ridgid.

-Chris

[BadgerDave]

Here are a list of the 15 stores HD will close


-- #2015 East Fort Wayne, Indiana
-- #2032 Marion, Indiana
-- #2310 Frankfort, Kentucky
-- #379 Opelousas, Louisiana
-- #2819 Cottage Grove, Minnesota
-- #6901 East Brunswick, New Jersey
-- #6904 Saddle Brook, New Jersey
-- #6171 Rome, New York
-- #3702 Bismarck, North Dakota
-- #3874 Findlay, Ohio
-- #3865 Lima, Ohio
-- #4552 Brattleboro, Vermont
-- #4932 Beaver Dam, Wisconsin
-- #4933 Fond du Lac, Wisconsin
-- #4913 NW Milwaukee, Wisconsin

The story I heard, not read, was that they are only closing unprofitable stores. Stores that are turning a profit are not in danger of closing. Sounds like a sound business practice and not the beginning of the end for HD.

[DUNBAR]

Stores that are turning a profit are not in danger of closing. Sounds like a sound business practice and not the beginning of the end for HD.



Lowe's is not having this problem, but Home Depot is. There is a reason.


Come to Nothern Kentucky/Greater Cincinnati to find out why they ask the employees to park in the customer parking spots near the door. They're trying to eliminate the noticeable image when you drive by that nobody is buying.



I'm a gambler so anyone want to lay a $100 spot that this is just the beginning? The biggest grossing HD in my area is down to a skeleton crew. Explain that one. :tongue:



http://biz.yahoo.com/ap/080501/home_depot_store_closings.html?.v=2

[garager]

Wow B D, you guys don't like them there in Wisconsin. Everybody must be going to Menards and Lowes instead.... :D

[HVAC HAWK]

they started to dig all the drains and parking lot for a 2nd HD in my county but stooped and my not start up at all now .there are plans for a 2nd lowes to go in but not sure when they will start .
i like lowes better because at HD we need a card to charge thing to the company account and at lowes all you need is your name on the account

[BadgerDave]

Wow B D, you guys don't like them there in Wisconsin. Everybody must be going to Menards and Lowes instead.... :D

Yeah, I can't speak for anyone else but I usually go to HD only when I have no other choice. Mostly because of the usual reason people rant here about HD. Lowes is still relatively new here in WI with only a couple stores and the closest one to me is about 70 miles away. Menards is well entrenched here and usually has much better pricing than HD on almost everything.

[NHMaster3015]

So you suppose that all the small hardware stores and lumber yards that these mercenary pricks ran out of business will start up again.? H.D. is having problems for two reasons. One housing starts are down and the economy sucks so the diy'ers are slowing down. Two because going there sucks.

[Frankiarmz]

So you suppose that all the small hardware stores and lumber yards that these mercenary pricks ran out of business will start up again.? H.D. is having problems for two reasons. One housing starts are down and the economy sucks so the diy'ers are slowing down. Two because going there sucks.

Good observations. Wonder how many people remember those small, personal stores? I don't think they will make a comeback and that's unfortunate. I'm still able to go to one of those small hardware stores and they usually have more in stock than my H/D, along with better service. I think if the economy is big factor here we have to assume Lowes and the rest of them will have similar problems down the road. I hate to doom and gloom but I can't figure out what will need to happen in order to turn things around? :confused:

[DUNBAR]

I don't think small businesses will start up again.....another large monopoly of money will recreate itself after there's a turnaround in the economy.


The old addage that nothing lasts forever will always ring true.

All good things must come to an end. :sad:


I do believe that the small guy enjoyed this news today about the hardships faced by this one company.


History always repeats itself so one company creates, another disintegrates. You'll find out that in the structuring of new companies lay some of the thinking minds that created a success reinvents themselves again in another.



As much as I hate to say this.....and any businessman that knows how to do it, it's actually profitable to tank a business from time to time. Spawns opportunity and gives the ability to restructure debt.


Perfect example; Donald Trump


He had one of his projects/properties go into forecloasure a year or two ago and you know darn right well he had the money to bail it out. That's not good business thinking though.

Took it through Chapter 11 or one of those chapters and restructured, showed a loss which in turn can be a tax gain of sorts and moved on like it was no big deal.

Is it right when you have resources to bail your business adventure out? Probably not but no court of law can stop you on the legal front of that logic.


Remember that HD made huge profits those beginning years...I believe it was 3 fellows. They was smart to make that big money and remove themselves from the picture. They sold millions of books of the idea "Be like Me" and created a cheerleading logic of the workforce for the employees. Structured/tiered the development and advancement process of employees to strive and gain the ability to get to the top.

They're smart; they constantly move employees and management around the building so they cannot put in a lot of time in one place and specialize in that department.........that means they'll want more money for their expertise. Shovel them into unknown territory bringing them down to "employee in training" and this will instantly slow the wage earning chart considerably.

It's all one big logic game and everything has a reason for its purpose.

I don't think any business giving the nature of retail offers constant and steady positive percentage in sales. Too many variables that can affect it.


At some point the balloon has to deflate, that's reality in a nutshell and you cannot expect warm sunshine and friendly weather everyday. Never going to happen in business.


I believe GE owns HD now or part of it; you'll never take down GE no matter if all the stores close or not. It's called recreation in another name.


The board of directors are not stupid; there's a reason why they got to the top and a closed business was part of that equation. :D

[woodenstickers]

I *ahem* "know" someone who works in their "home services" department and the news across the country is "get ready" because they are selling about one mill a day in kitchen and bath refacing. They are also looking to contract out their new cabinet installations which will account for billions. They won't be going anywhere any time soon. We are talking about the second biggest retailer in the world after Wal-Mart. They may be cutting down on their stores now precisely because they have finished running the little guys off and now can afford to make folks drive a little further since they are the only game in many towns.

They demolished the competition in my area, and now that many banks are not lending for home improvements the fact that they will finance themselves for remodels they are getting ready to squash the small remodel contractors as well.

I deplore the corporate model of HD and their awful culture up the chain, but I don't think Lowe's is the savior either. There is one very close to my house that I frequent and ALL of the complaints that people, including myself, have made about HD have been just as bad at my Lowe's lately. I prefer OSH ore ACE if I can find em for hardware, Amazon, Ebay or other online stores for large tool purchases. I still find myself in an HD or LOWE'S several times a month though.


So what are the terms on that $100 bet Dunbar?:tongue:


Eli

[Woussko]

Try going to a smaller city shopping mall on a weekday morning or early afternoon. You'll think you're the only customer in the place.:confused:

People may have finally woke up to "Happy Screws To You" played in about all the major stores and malls. Now people are sick of hearing it all the time.

[DUNBAR]

So what are the terms on that $100 bet Dunbar?:tongue:


Eli




You wanna bet that HD won't keep closing stores?

:wave2:


I'm exercising my hand to reach out to collect. :rotflmao:


I've never wished hardship on anyone but if Lowe's holds

strong and steady while another big mogule is having to cut

back and stop the infiltration of new markets....there's big

trouble in little china I'm afraid.


I've watched Home Quarters, Builders Square, Furrows, Central Hardware all become victims in the past 12 years..............just 12 years.

[CWSmith]

My opinion is that this is long overdue! Home Depot was just about wrecked by the last jerk CEO and I haven't seen much improvement with the current CEO. That, combined with the downturn in the economy, the housing crisis, the devaluation of the dollar, and the high cost of gas for shipping product and you have some pretty nasty trends that has got to have a negative effect on the building materials business.

Also, it's very hard to find anyone who hasn't had a really poor experience with Home Depot. This forum has an abundance of 'tales', so I'm sure there are other forums out there with similar experiences.

However, HD is a BIG operation and I think with today's news, we're seeing the first steps of adjusting to the economic times. Surely there will be more announcements and I'll be surprised if it doesn't effect Home Depot's competitors too. How far it's going to go will depend largely on the management's ability to rally their employees and of course their customers.

While the situation is certainly sad for those facing layoff, it should also go as a warning to the surviving Home Depot (and other) stores to get their act together. I'm quite sure today's announcement will echo through the offices of regional managers too. They've got to take some serious steps to correct their reputation with the consumer. This announcement is a very small percentage of their overall operation, but if they don't get back on course, they could very well be a distant memory by the end of the decade. They're overhead is massive and a declining reputation isn't going to be easy to change. It's going to take some savvy management at all levels.

CWS

[woodenstickers]

You wanna bet that HD won't keep closing stores?

:wave2:


I'm exercising my hand to reach out to collect. :rotflmao:


I've never wished hardship on anyone but if Lowe's holds

strong and steady while another big mogule is having to cut

back and stop the infiltration of new markets....there's big

trouble in little china I'm afraid.


I've watched Home Quarters, Builders Square, Furrows, Central Hardware all become victims in the past 12 years..............just 12 years.

I'm not saying that current economic factors are not a part of the reason for this. I do think HD is a different model than the other stores you describe, and this pull back was always part of the plan. They are predatory, and they have saturated the market in order to drown the competition. When that part of the plan has reached a point of diminishing returns it only makes sense to pull back the growth, adjust it, and then raise prices, streamline and focus on profit.

From where I sit typing this there are 4 HD's within a 15 minute drive from me. Even in bad traffic. Another 3 if you make that 1/2 hour. Here's the map (http://www.mapquest.com/maps/Home+Depot:San+Bruno+CA+94066/#a/search/l:::San+Bruno:CA:94066::37.6267:-122.4257:zip:/m::7:37.664684:-122.308085:0::/so:Home+Depot:::d::25:::::/e)

If they closed 15 in Northern California there would still be too many.

Now, all that said, their store is getting crappier every time I go into one. I hate the way they have the tools set up now with the air tools in a long aisle, and I am finding their selection to be weak as well. I actually went into one last weekend and didn't see one thing I had to keep myself from buying. That sounds like a joke, but it is true, I didn't even WANT anything in there. Never happened before. But at this point they have won the first part of the war I think, Lowes and others will have a lot of catching up to do, and this is not the market to be making those moves I'm afraid.

We'll see though. As far as the $100 goes, I'll bet you that they will still be the dominate force in the market for years to come, that they will expand into other aspects of the market doing more contracting of home services, and that the company will do as well as the economy allows, meaning they will not take any hits that the industry as whole doesn't take. I would even guess they will withstand a few that others in the industry won't. I think they would be closing stores eventually even in a boom economy though. All part of the plan I'm afraid.



Eli

[NHMaster3015]

Every child born in this country should be given a 55 gallon drum of Vasalene to help ease their way through life as corporate America and the politicians find new and better ways to screw us. If people were not such a gullible herd of sheep, we could shut down the big box stores in a week. But we won't, because we really don't care that much. We all love to ***** about them, but damn few of us are willing to actually do anything about them. Ever hear anyone say how great the service was at home depot or wal-mart. No, just ***** about how crappy the service is and how they hate going there but go anyway. People have all the power, but the corporations and the politicians have known since the beginning of time that as a group we are pretty much useless.