Ten Years of promises that Home Depot was locating itself on Eureka’s waterfront have been canceled, and along with it Rob Arkley’s Marina Center Dreams of revenge.
That’s right after all the years of public boosting, particularly on radio station KINS’s talkshop by Arkely henchman Randy Gans and Arkley himself, the anchor of their Marina Center has decide not to open any new stores. OMG!
Home Depot at one time was opening 4 stores a week and thought nothing of competing with its own stores nearby.
From MSN Money;
Home Depot pulls the plug on new stores
The chain blanketed the country with its giant locations. Now it makes more sense to focus on e-commerce.
Home Depot’s newest location is 10 times bigger than its average store, stocks three times more items and has no customers.
It’s an online distribution center, for a company that seems the unlikeliest of Internet retailers.
For decades, Home Depot excelled at the traditional retail model of growing by adding new locations. But the seller of tools, saws, particleboard and washing machines is making a hard turn toward the Internet in the face of changing shopper habits and fast diminishing returns from new store openings.
This year, the home-improvement chain will open two distribution centers and just one store. The move is a stark signal for an overbuilt industry that may be witnessing a permanent drop in shopper traffic, even in the middle of a housing recovery that is boosting sales.
“The retail model forever was to increase sales through opening additional units, but as you added stores to a finite group of households, each store becomes less profitable,” Home Depot Chief Executive Frank Blake said in an interview. “So the decision was made to stop opening additional boxes.”
Like many big-box retailers, Home Depot spent the last three decades blanketing the U.S. with giant stores, ample parking and shelves 12-feet high of plumbing supplies, paint and lumber. The chain put up as many as 200 stores a year until the housing market collapsed in 2008, when it had 2,233 stores.
The proliferation of do-it-yourself stores meant that home-improvement retailers were duking it out, on average, for just 30,000 households per store by the time the financial crisis wrapped up, down from 77,000 a decade before.
Home Depot decided in 2008 to close 15 stores and pull the plug on 50 new openings it planned for the next four years.
The transition online is no small feat for Home Depot. In addition to selling vanities, humidifiers and garden hoses, it has to figure out how to get 130-pound Jacuzzi tubs and iron patio sets from warehouses to customers’ doors within days. That presents unique logistical challenges.
At a warehouse the size of 20 football fields 35 miles south of Atlanta, workers grab ceiling fans, faucets and light bulbs off of rows of giant shelves and load them onto winding conveyor belts to be packed into boxes that will be shipped to customer’s homes, to job sites and to stores for pickup. Forklifts shuttle heavy, bulky items on wooden pallets to loading docks.
Full story here;