Home Depot Inc. announced on January 26th 2009 that it will be closing it’s Home Depot Expo home design centers due to further declining sales and doubt that in 5 years the design centers would grow significantly in sales.
Home Depot opened it’s stand alone Expo home design centers in 1991 as a way to offer personalized and detailed custom home remodeling and custom designs to homeowners. The home design centers allowed customers to work one on one with professional Expo designers which allowed homeowners to get home remodeling that fit their budget and tastes.
According to previous reports, the Expo division of Home Depot Inc. was never greatly profitable and diminishing hopes in future growth is reportedly the main reason for shutting down the Expo home designs portion of the company.
The announcement to close Expo will affect 34 Expo home design locations and eliminate around 5,000 jobs. In addition to the 5,000 jobs predicted to be lost due to the Expo design centers closing down, Home Depot Inc. announced that an additional 2,000 jobs from it’s main operation will be eliminated at the same time. The additional 2,000 job reduction will mostly affect support staff at Home Depots.
With Home Depot executives predicting a continued decline in sales, estimates state about an 8% decline for the fiscal year, many top officers in the company have had their pay frozen. In addition to this, Home Depot Inc. announced today that it will cut spending and reduce expansion.
Last year Home Depot opened 55 new Home Depot locations, this year they are looking to open just 12 new stores.
Lately, the number of stores closing and companies filing for bankruptcy have risen sharply in the past few months. Many companies are taking proactive measures to protect their business, their employees, and their investors from the worst.
This writer sees Home Depot’s approach as being quite proactive and in the midst of so much economic turmoil, it seems wise to cut spending and reduce risk as much as possible. If Expo home design center’s weren’t as profitable as expected when the home market was great, I can only image how much money this division was losing once the housing market bubble burst.
Disclaimer: The writer’s views expressed in this article do not necessarily reflect the views of Associated Content or any other site, writer, or company. The writer is not affiliated with Home Depot Inc. or any of it’s divisions nor does the writer hold any stock in the company. The writer is also not affiliated nor holds any stocks with any of Home Depot Inc.’s competitors. Any news information presented in this article are presented strictly for informational purposes.
Rating: 4 out of 5