Home Depot(R) Opens New Sourcing Offices in China

Oct 10, 2002, 01:00 ET from The Home Depot

     ATLANTA, Oct. 10 /PRNewswire-FirstCall/ -- The Home Depot (NYSE:   HD), the
 world's largest home improvement retailer, will be opening two sourcing
 offices in Shanghai and Shenzhen.  The announcement was made by Duane Goodwin,
 vice president, Global Sourcing, The Home Depot, while speaking to attendees
 at the China International Hardware Show 2002.
     "With offices in Shanghai and Shenzhen, we will greatly enhance our
 opportunities to purchase more goods directly from manufacturers," said
 Goodwin.  "With more than 1,450 stores in the rapidly growing Home Depot
 system, we need access to innovative products with the outstanding quality and
 affordable prices that our customers have come to demand and expect from us,"
 said Goodwin.  "The offices in China will allow us to rapidly expand our
 purchasing throughout China and Asia."
     The company has hired Chinese associates with experience in product
 development, quality assurance, manufacturing assessment and knowledge of
 manufacturers to assist with the effort.  By adding sourcing offices, the
 company is closer to its vendors strengthening the partnership and
 accelerating the benefits of a direct relationship.
     "It's a win-win situation," said Goodwin.  "We increase our quality
 suppliers and they grow their business by meeting our product and quality
 control requirements.  Even more exciting is our customers are winners because
 they can be assured of getting more high quality products at even more
 affordable prices."
     Home Depot imports products from around the world.  However, today, China
 is the largest source of these imported products which include lighting
 fixtures, fans, flooring, bath accessories, faucets, hardware and tools.
     "We have the advantage of over 10 years of China experience as we open
 these offices," said Goodwin.  "Several of our proprietary brands, such as
 Ryobi, Hampton Bay, and Glacier Bay are already made in China.  The success of
 these brands has been based on direct factory relationships and partnerships.
 We will dramatically grow our base of suppliers throughout Asia."
     The Home Depot currently imports products from some 40 countries.  The
 company has said it intends to grow its imports to some 10% of the sales in
 its stores.  Presently, these products are housed in seven huge import
 distribution centers (IDC), around the United States ranging between 750,000
 square feet to 1.4 million square feet.  Plans are already in place to build
 additional import distribution centers to accommodate the growth of direct
     Founded in 1978, The Home Depot(R) is the world's largest home improvement
 specialty retailer and the second largest retailer in the United States, with
 fiscal 2001 sales of $53.6 billion.  The company employs more than 280,000
 associates and has 1459 stores in 49 states, Puerto Rico, seven Canadian
 provinces, and Mexico.  The company for the second year in a row was named
 sixth Most Admired Company in America by Fortune magazine, which has also
 ranked it as America's Most Admired Specialty Retailer for eight consecutive
 years.  Its stock is traded on the New York Stock Exchange (NYSE:   HD) and is
 included in the Dow Jones Industrial Average and Standard & Poor's 500 Index.
                      Make Your Opinion Count - Click Here

SOURCE The Home Depot