Home Depot: On the Road to Becoming Customer-Friendly Again?

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Case Details:

Case Code : BSTR324
Case Length : 20 Pages
Period : 2000-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : The Home Depot Inc.
Industry : Retail; Home improvement
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Nardelli's strategy to expand into the contractor supply business, while cutting costs and streamlining operations in 1,816 U.S. stores, has pushed customer service down the company's priority list... But the company appears to be waking up to bubbling discontent among customers and employees." 1

- BusinessWeek2, June 19, 2006.

"That kind of deterioration would be a challenge for any newly minted chief executive… But trying to recast the company's image in the middle of the worst housing downturn in decades multiplies the challenge." 3

- Fortune Magazine4, November 25, 2008.


In February 2008, a report was released by the University of Michigan's American Customer Satisfaction Index (ACSI). According to the report, The Home Depot Inc. (Home Depot), the second largest retailer in the US5 and the largest home improvement retailer in the world as of 2008, had scored 67 points on a 100 point scale. The score, about 4% lower than the previous year's score, was the lowest among all the US retailers. On the other hand, its arch rival Lowe's Companies, Inc. (Lowe's)6 score remained the same at 75 points as earlier.7

Home Depot: On the Road to Becoming Customer-Friendly Again? - Next Page>>

1] Brian Grow and Susan McMillan, "Home Depot: Last among Shoppers," www.businessweek.com, June 19, 2006.
2] BusinessWeek, is a weekly business periodical, started in 1929. The business magazine is published by McGraw-Hill and is headquartered it New York City, the US.
3] Jennifer Reingold, "Home Depot's Total Rehab," http://money.cnn.com, September 19, 2008.
4] Fortune Magazine, founded in February 1930, is a business magazine published by Time Inc's Fortune/Money group.
5] Wal-Mart Store, Inc. is the largest retail chain in the US as well as across the world.
6] Lowe's was a retail chain of home improvement goods and appliances and also offered home-related services. It was founded in 1946 in North Carolina, the US.
7] "Customer Satisfaction Drops Again and Consumer Spending Likely to Weaken Further," http://www.reuters.com, February 19, 2008.

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