Home Depot’s Next China Step: a New CEO

Wednesday, February 14, 2007 11:07
Posted in category Going to Market, The Big Picture
Comments Off on Home Depot’s Next China Step: a New CEO

Home Depot lately has been having a tough time of late. They have been losing market share to Lowe’s, the former CEO Bob Nardelli just left with a massive bonus that has reinvigorated the discussion on executive pay, and a number of other executives have also recently left..In China, it has been no different. for 3 years Home Depot struggled to gain traction on the retail side. Several projects did not go the way they were planned, 2 executive teams were removed, and they were largely seen as outplayed by their rival B&Q.

However, the December announcements of THD’s acquisition of Homeway seemed to turned the corner, and Home Depot could officially say they had retail stores in China. It was obviously a huge psychological win for the team here in Shanghai, and they need to make sure to follow through with more steps to really stabilize over the longer term.

Well, it appears that the next step has been taken as The Home Depot has hired on Yves Chen to manage the China operations (see Business Week, Retail Week , and 24 more articles ). having held positions in Hualian and Carrefour in China, it would appear that he has the pedigree to really build Home Depot’s presence here.

If nothing else, the next 6-12 months will be the most critical in Home Depot’s strategy as they will have to build out form their existing 12 stores, and the plan is sure to result in more posts as they go after B&Q’s space.

It could get really nteresting if Lowe’s decided to enter….

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