In the area of Associate Engagement, The Home Depot intends to focus on know-how and service as a competitive edge, and in 2007 plans investments in associate engagement to total $360 million, including recruitment of master trade specialists, a simplified staffing model, technology-enabled customer assistance, and redesigned compensation and reward plans.
To create more Product Excitement, the retailer will focus on product innovation, more focused promotions and everyday low pricing to drive merchandising initiatives in 2007. It expects to invest $260 million in 2007 on merchandising resets, product innovation, pricing strategies, and sourcing initiatives.
In the area of Product Availability, the retailer will focus on improving its in-stock position by investing in its logistics capabilities, including demand forecasting and distribution. The company plans to invest $275 million in these efforts.
To the area of its Shopping Environment, the retailer said it consistently hears through surveys that customers want a safe, clean and uncluttered store. In 2007, it plans investments of $865 million to support the shopping experience, including sustained maintenance and merchandising reset programs.
Finally, the retailer's Own the Pro initiative will focus on being the No. 1 destination for pro customers, primarily repair and remodel professionals. In 2007, it expects to spend $415 million on loyalty programs, a pro bid room to handle large customer orders with volume discounts, direct ship programs, credit programs, and other specialty sales initiatives.