Home Depot presents growth targets

Home Depot expects annual sales growth of 9 to 12 per cent until 2010. The company's growth targets for the next five years are based on three factors: 400 to 500 new store openings, expansion of the service offer (At Home Services) and of the wholesale distribution division (Home Depot Supply).
In terms of new DIY store openings there will be a slackening of the pace of expansion compared with previous years. New store formats of around 5 500 m² for rural and urban areas are included in the announcement, along with increased international expansion and entry into the Chinese market.
Home Depot sees considerable potential for growth in the professional market, which is evidenced by the acquisition of Hughes Supply. This division is expected to generate sales of US $ 23 to 28 bn by the year 2010, when its share of overall sales should increase from today's figure of around 4 per cent to 18 or 19 per cent. The company claims that the service business – carpet laying, window installation, etc – is currently recording double-digit sales growth and is expected to contribute between 5 and 6 per cent to overall sales by 2010.