Depot Softens Newest Stores

In its continuing quest to woo female shoppers, Home Depot opened design centers in Concord, Ca., and Charlotte. N.C.. in late October. The new format is the latest hybrid between the chain's regular warehouse stores and its upscale Expo design centers.

Landscape

Supply Closing Home Depot will close

Landscape Supply's l1 stores by Nov. 19. Five stores are located in the Atlanta. Ga.. area, and six in the Dallas-Fort Worth, Tx., area.

"We think the resources being used on Landscape Supply would be of more benefit to our core retail stores," said spokesperson Ron DeFeo. The chain recently sold its wholesale supply division, HD Supply, and plans to spend $2 billion this year to upgrade its retail operation.

When Depot launched Landscape Supply in 2002, analysts expected the format to be expanded to other Sunbelt cities.

"Imagine a Home Depot designed by a woman," said Jason Feldman, senior director of merchandising. "Nothing about this store feels like the Home Depot you know today. It feels much more like a studio environment."

He admitted that female consumers have always been a challenge for the chain, which has tried to soften its image for women but still appeal to contractors. The two new centers will test what happens when the company separates the two customer groups.

Each store covers 5 to 7 acres, including a greenhouse area and a large outdoor space for shrubs and trees.

As Depot continues to cut back and focus on its original warehouse stores, many wonder if the upscale Expo Design centers are next. The number of stores in the chain has been pared to 34, and features such as high-end flooring and bath merchandise can now be found in some Depot stores.

However. DeFeo denied that Expo is in any danger. "We think the current number is appropriate. We don't have plans to expand the format, but there are no plans to close it, either."

"The only reason a contractor would come into these stores is if a customer asked him to pick up tiles or countertops or something like that for a project," said Feldman. "Otherwise, if a contractor walks in and thinks this is a Home Depot, he's going to turn around and walk right back out. The beauty is, we've put these two stores a couple of miles away from the regular stores, so we've still got something nearby that focuses on the core do-ityourselfer and the pros."

Visitors to the new centers won't find lumber and building materials or heavy-duty power tools. Taking their place will be an 11,000-sq. ft. furniture showroom by Home Decorators Collection- a catalog business that Depot acquired last year. A similar arrangement was tested on a smaller scale at an urban-format store in Chicago,Il.

"The results in Chicago have been so good that we said, let's do it on steroids in Charlotte and Concord," said Feldman. "A consumer who's looking to refresh and upgrade the d6cor in her home is going to want to look at fumishings, too."

Other improvements include a home organization area with decorative storage boxes and shelving. A garden shop will sell orchids, pottery, and what Feldman called more "sophisticated" products. Kitchen and bath showrooms will carry a much broader assortment of goods than regular Depots.

"We're going to have all the price points in one store," he said. "We've gotten a lot of feedback from customers and they've essentially told us, 'I may want to buy a $6,000 refrigerator or an $89 faucet, but I want to be able to buy them in the same place."

The big question is whether Depot will open additional female-friendly stores. Expo Design was once slated for major expansion, but has been cut back to just 34 stores. "It's two stores and two stores only right now in a couple of markets where we thought it would make sense," said Feldman. "Everything we're testing right now is really about finding out what works in a particular geography, and seeing if there are pieces that work that we can transfer somewhere else."