Home Depot and Customer Service haven't gone together for awhile

Source Article: Home Depot Retrains Cashiers, Shelf Stockers in Turnaround Push | www.bloomberg.com (view article)


Implications:
1) Home Depot grew from it's inception by using skilled associates

2) Service became a lower focus as they grew

3) Focusing on being a retailer again is good long-term strategy


Analysis:

Home Depot focusing on Customer service is a good thing both for the customers and the firm.

As the economy stays in the doldrums, more and more people who wouldn't have dreamed of "DIY" before will be thinking about doing things around the home and garden themselves. A Customer Service emphasis and associates who can provide knowledge for nervous novices is where this company can really take off.

This is where Home Depot originally grew, and where they need to be again to get the business growing in these troubled times.

THD strayed far from it's retailing roots under the prior management, led by Mr. Nardelli. Concentration on doing all the little things right, keeping the stores in stock on promo and fast moving items, making sure there are enough associates with knowledge available to make the customer experience a pleasant one.

Lowe's has been winning the customer in-store experience recently, so to see a momentum swing back to Home Depot, in a tough retail climate, shows the tough initiatives and focus on retailing are starting to bear fruit