The Home Depot (Atlanta) has announced a $3.7 billion capital spending plan for fiscal 2004, which calls for investments in store modernization and maintenance, technology and the addition of 175 new stores.
“We are accelerating our store modernization plans in 2004, spending $1 billion in both capital and expense, double what we spent in 2003, as we are experiencing a positive impact from our resets and remodels,” says Carol Tome, executive vp and cfo.
The company says it expects a sales growth in 2004 of 9 to 12 percent, with comparable stores sales increasing 3 to 6 percent.
Among its store modernization efforts are new lighting, paint schemes, floor finishes and signage packages that will be introduced in all stores within three years. In addition, the company aims to improve the store environment and customer services with new POS and self-checkout systems, two-way cordless scan guns, rapid price look-up and new return-without-receipt automation systems.
“We are improving the shopping experience through such technology enhancements as self-checkout, which continues to drive customer shopping satisfaction levels,” says Troy Rice, senior vp, operations. “In 2004, we are completing the addition of cordless scan guns for the front-end, while focusing on back-end receiving initiatives. The technologies we have deployed in e-learning should be an important differentiator as we improve the consistency of associates' know-how on the floor of our stores.”
The home improvement retailer operates 1695 stores in 50 states, the District of Columbia, Puerto Rico, eight Canadian provinces and Mexico.