April 17 Home Depot Inc is putting a lid
on new-store openings and focusing its expansion efforts on
e-commerce, which presents some logistical challenges for a
retailer that sells a lot of bulky materials, the Wall Street
"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 told the Journal in an
"So the decision was made to stop opening additional boxes."
Under Blake, Home Depot closed smaller, secondary stores and
upgraded service and products in its core "big box" stores to
win back market share from Lowe's Companies Inc.
The world's largest home improvement chain has also
benefited from its slower expansion strategy.
Home Depot was not immediately available for comment outside
regular U.S. business hours.
(Reporting by Supriya Kurane in Bangalore; Editing by Joyjeet