January 20, 2003-- Home Textiles Today,
The Home Depot to boost cap spending to $4 billion
At its annual analyst meeting last week, The Home Depot announced it will increase its capital spending for fiscal 2003 by 21 percent to $4 billion. It expects sales growth of 9 percent to 12 percent for the year and earnings growth between 9 percent and 14 percent. "We have embarked on a transformation of The Home Depot from a young, decentralized business to a more mature and balanced company with predictable and sustainable growth potential," said Bob Nardelli, chairman, president and ceo. In the coming fiscal year, the company plans to open 200 stores and will launch a $250 million store remodeling program. Store-level initiatives, remodels and technology will cost $880 million, or 22 percent of the capital spending budget. Jerry Edwards, executive vp, merchandising, said that the retailer would continue to broaden its merchandise assortments, improve the shopping environment and reset its stores to reflect new assortments gained through strategic alliances and exclusive product arrangements. It will also increase its penetration of direct imports in the coming year, he said, though the merchandise mix would remain 85 percent national brand sales.
Value City moves to holding co. structure
Value City Department Stores announced that effective Feb. 2, 2003 it will reorganize its corporate structure into a holding company with three retail operating entities and a service organization. The new holding company will operate under the name Retail Ventures Inc. Under the new structure, Value City Department Stores, Shonac/DSW Shoe Warehouse and Filene's Basement will become subsidiaries of Retail Ventures Inc.