Home Depot considers shedding HD Supply

Share this article:

A little more than a year after plunking down $3.2 billion for wholesale supplier Hughes Supply, Home Depot said yesterday that it is considering selling its HD Supply business in order to focus on its retail business.

The Hughes Supply deal was brokered by former chairman and president/CEO Robert Nardelli, who vacated that office in January after his six-year tenure failed to lift the retailer's stock price and amid growing questions about Home Depot's strategic direction.

Building the HD Supply division was reportedly one of Mr. Nardelli's pet projects. Supplying and servicing professional builders, contractors and maintenance workers was seen as a significant opportunity for the home furnishings retailer, since the home supply market is $410 billion. That soon changed amid growing reports of poor customer service in Home Depot stores.

Home Depot, Atlanta, said that it has decided to evaluate strategic alternatives for its HD Supply business, including a possible sale, spin-off or initial public offering.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

7 Ways to Take Your Marketing Strategy to the Big Leagues

7 Ways to Take Your Marketing Strategy to ...

A game-winning omnichannel strategy must be seamless, synchronous, and symbiotic.

Pet World's Multichannel Marketing Is a Whole Other Animal

Pet World's Multichannel Marketing Is a Whole Other ...

The family owned pet store redesigns its website to bring the in-store experience online.

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.