Home Depot has Money for Buybacks, but not Service?

Wednesday, June 20, 2007 | 10:01 AM

> Rant mode on:

As I mentioned previously, we moved a few months ago, selling one overpriced house and buying another. This means that I have spent an inordinate amount of my precious sparetime at Home Depot, Lowes, Sears, HD Expo, Fortunoffs, etc.

Missus Big Picture has long ago made her preferences known for Lowes over the Depot. Its brighter, cleaner, better organized, more accessible to the average non-professional/non-contractor shopper.

And while Lowes service is not bad, Home Depot is awful -- almost as bad as Sears, where tumbleweeds roll by in the Hicksville store, and staff -- and customers -- are non-existent.

I've been to the 3 different HD's within 15 minutes of the house (the cannabilization issue is best left for another discussion) -- all hours, days.

The Service isn't bad -- it is simply non-existent. No one in the aisles -- electrical, plumbing, lighting, etc. There's usually someone in paint, but thats only because someone has to mix the colors with the base paint. And a handful of souls watering the plants in outdoors/gardening.

Other than that, Nardelli's legacy -- other than the half a billion dollars he made off -- will have been to eviscerate the vaunted customer service of Home Depot, leaving it an orange, hollow shell.

But $22.5 billion for share buybacks? Here's a suggestion: Undo all of Nardelli's slash & burn firings, or you'll have nothing left -- in terms of revenue and income -- except for the buybacks.

Financial engineering is all well and good, but what about focusing on what made you the pre-eminent home improvement store in the first place?

>

>Rant over.

Wednesday, June 20, 2007 | 10:01 AM | Permalink | Comments (45) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e008c8ad508834

Listed below are links to weblogs that reference Home Depot has Money for Buybacks, but not Service?:

Comments

I couldn't agree with you more. But what about selling HD Supply for $10b and buying back $22b of stock? Let's see, sell future earnings, then spend that money and more (probably borrowed) taking away from future earnings again.

The future does not look bright at home depot. HD Supply as the WSJ article today said, created a good amount of revenue and more importatnly sales growth.

Short term gain, long term loss.

Posted by: A-Mack | Jun 20, 2007 10:40:38 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner