Home Depot And Lowes Taking Losses Too

nywoodwizard

Home Depot has first annual sales dip

Home depot is taking a tiny hit in there huge wallet as well as Lowe's, reporting fourth-quarter profits had declined more than 27 percent. The article goes on to say while home depot and Lowe's profits sag, Lowe's actually predicted sales will increase 3 % in 2008 while home depot predicted a sales decline of 4-5% in 2008.
These stores are homeowner/remodeler oriented and reflect the slow down being felt thru remodeling now , much like the home building/construction who are also taking a beating.

I don't see things improving til 09 at the least by then the goverment will have had at least two chances to stimulate the economy, if imigration becomes a real politcal issue, i'll predict lower uninployment rates/job growth.

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Learning without thought is labor lost; thought without learning is perilous.

Celtic

Home Depot has first annual sales dip

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Ed the Roofer

Here is something related from asales tips e-newsletter from Jim Meisenheimer at www.meisenheimer.com that I just received today.

Ed



What are you selling?

How would you answer this question?

I always ask this question during my sales training programs for my corporate clients.

Here's a sample of the responses I typically get:
"I sell dental supplies."
"I sell laboratory supplies."
"I sell (insert the name of your service)."
"I sell medical supplies."
"I sell lumber, doors, and windows."

I think you get the picture. Look, if you're in sales you're probably selling a product or a service. And that's understood!

If you think Starbucks is selling coffee you are mistaken.

If you think Home Depot is only selling products for the home you are mistaken.

What you should be selling are solutions. Solutions to customer problems.
Recently, Starbucks has been expanding rapidly and added sandwiches which changed the aroma of their fabulous coffee and slowed down their overall service. And because of their rapid growth they couldn't keep up with staff training.

The results are in - they just reported their first decrease in customer visits last year. They forgot what they were selling - the upscale coffee experience. Now they are scrambling to win back the customers they lost. Good luck in this down economy.

Home Depot cut back on its in-store experts and service in general which has opened the doors for Lowe's and their explosive growth.

C. Britt Beemer, a retail analyst, says "if you're going to keep customers happy, they have to have a great experience and have it consistently." The picture gets worse when he adds, "I've never seen so many retailers in my life that know less about their customers than they do today."

This is just not about retailers. How well do you know your customers?

How well do you know your customer's customers?

ihms683

maybe they will drop their prices

ChrWright

How long ago did they cut back? I can't remember EVER running into an "in-store expert" at Home Depot (or Lowes or Menards or Ace or Sears, etc. etc. etc.)

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Christopher Wright, CR: President @ WrightWorks, LLC/President @ Central Indiana NARI, Named to the 2010 REMODELING Big50
www.WrightWorks.net - Facebook - Twitter - Carmel Remodeling
Indianapolis Kitchen Remodeling Contractor - You Can Get There From Here

Ed the Roofer

Don't you remember about 15 or so years ago, on their first Grand Opening Day?

I think that was the only time they had any sort of expert in their store, except for when I shop there for odds and ends.

Ed

ChrWright

That's not being fair Ed, we all know you're a god among mere mortals...

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Christopher Wright, CR: President @ WrightWorks, LLC/President @ Central Indiana NARI, Named to the 2010 REMODELING Big50
www.WrightWorks.net - Facebook - Twitter - Carmel Remodeling
Indianapolis Kitchen Remodeling Contractor - You Can Get There From Here

nywoodwizard

I feel for folks shopping there, they did cut back so now expect to walk approx 4.5 miles before finding somebody to help out, (they discontinued the indoor bus service) and now offer roller blades and skateboards for those who can.

Folks looking for help with items are ganging up on the first guy that comes down the isle resembling a contractor or clerk, now that they got these folks hooked they offer little help.

Paying a little more sometimes at local lumber yards is well worth it, eliminating a few miles of walking, sitting in my truck relaxing drinking a beverge while the yard guys run around and pick all my items and then load them in my truck, In home depot i can't find a guy in lumber who knows where lumber is, never mind loading my truck. When comparing services there is no comparision

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Learning without thought is labor lost; thought without learning is perilous.

RenaissanceR

[deleted]

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Mike Finley

Somebody got a raise -- around here they are installing call buttons in the aisle. You press the button and it sends out a call to get somebody for you, one guy told me that it calls the manager at the same time so he monitors the progress (the employee was complainng about how they were watching over his shoulder).

They could be coming to a store near you soon.

I'm sure somebody got an atta boy for that big brain idea. And I'm also sure 20 minutes after they adopted it another person put for the idea that they could cut labor costs by firing one person from each dept thanks to the new efficiency the big orange button will bring.

Grumpyplumber

Same with plumbing, screw the idea of having to look inside every box or package to check if Joe homeowner didn't remove a part.
Double check the fittings to be sure they weren't flung in the wrong bin & hope nothing is dented.
Ask the plumbing guy where the swing checks are...he says "Whats a swing check?"..then.."Hang on, I'll get the manager, I think he's at the other side of the store."
They intentionally spread related stock & parts throughout different area's to keep the everyday shopper wandering around to look at extra's they might buy while there.
At 7pm when I'm rushing to get to an emergency call & don't have a part in my truck, the last thing I wanna be is a wandering everyday shopper.
I even had a plumbing guy there once pitch me that HD can get stock & fixtures that regular supply houses carry, as long as I could wait a week.
I came to find out that all they do is order those things from one of my existing suppliers, at a markup.
What a bargain!
I can order the same 80 gal water heater I usually get same day, wait a week and pay more for it.
They have been trying to lure the contractor market, thats not gonna happen.
I think they maxed their earning potential with Joe homeowner, while alienating contractors, promoting DIY'ers & dragging local markets down by cornering their subs into low priced work.

easy sider

There are many people at HD and Lowes in my area that are knowledgable in certain areas of construction but there are alot of idiots too. One of my customers decided to install his sub floor and was told to use 5/8 particle board over his floor joists from the HD expert. When I got back he asked why the floor was deflecting so I told him he had to remove all th particle board and use tounge & groove osb over the joists. After talking to the HD comercial sales manager HD agrees to give him the T&G OSB and should have paid to have the particle board removed. What a waste of time.

Grumpyplumber

"You can do it, we can help"

MarkC

It sounds like we won't see a strong upside untill late 2009.

orange Garrison

I have had many a bad morning at the depot, they have recently changed there computer software and network in canada.I have waited up to 1 1/2 hr to get an order processed.depending on the store I have found some good people that care but overall not that many maybe 15%.I recently went to the depot not my local store but one near a job.I went up to the pro desk to place an order, THE PRO DESK? the gentleman serving me did not know what house wrap,tyvek, or typar was and did not know what construction gold #8 screws were?he replied "BRASS" .thank god I was in the store and had not phoned in the order! if this is what the depot calls a pro then there in for some tough times!!!

Poolman

When ever I pop in to get an odd part, I write a check. The computer system always asks for my driver's license number - every time!
They said it won't do it next time...it's random.
B.S.!

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Scott

Is this going to be expensive?
It's all relative.

MALCO.New.York

Once Lived in West Chester, PA.

The third "Green Stone" House on West Virginia Avenue.

It was called "Bleeker Hall" (Pinkertons) and is Featured in the "Historic Chester County" Book.

It was deemed a "National Historic Landmark" until they discovered that the Windows had been Renovated!!!!

This is all that remains in my possession of said property:

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Something to One may be Nothing to another!

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http://www.youtube.com/watch?v=OW-cnizLDEE

orson

Believe it or not there is an extremely knowledgeable former plumber in the plumbing isle at my local HD. He's the only knowledgable person in the store as far as I (and he) can tell.

No idea why he's not plumbing anymore, half afraid to ask.

Our local store has had these for some time, the button announces the service request over the store pa as well. On weekends all you here is nonstop department/assistance requests on the pa.

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Winchester

In one of the stores here in the electrical dept. there is a retired Provincial Electrical Inspector who is actually very knowledgeable. Only guy I ever met working there that knew anything about anything.

I always find it amusing to listen to their employees tell a customer how something should be done. it is wrong 110% of the time.

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Ryan

BKFranks

I was in one of the local HD's a couple of days ago and I couldn't believe what I saw. I was used to seeing nothing but young kids working there(except maybe a manager), but I couldn't believe that most of the workers were between 30 and 50. I think it's just another sign of a bad economy. Unemployment is the fourth highest in the country here and construction is off 94%. I guess it isn't a surprise that these people are just trying to pay the bills by taking a job at HD.

My wife works for Black and Decker which owns Kwikset, Pricefister, Dewalt, and a few other companies and HD and Lowes are certainly being affected by the economy. They're trying to claim millions in credits they can't claim, trying to extend their payment terms, HD outsourced some of their operations from Georgia to India which is causing a bunch of accounting problems.

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