The Home Depot, Inc. operates as a home improvement retailer worldwide. The Home Depot stores sell an assortment of building materials, home improvement products, and lawn and garden products, as well as provide various services. As of February 3, 2013, the company had 2,256 The Home Depot stores located throughout the United States, including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam, Canada, and Mexico. Products The company’s product portfolio strategy is aimed at delivering innovation, assortment, and value. A typical The Home Depot store stocks approximately 30,000 to 40,000 products, including both national brand name and proprietary items. The company also offers approximately 600,000 products through its Home Depot and Home Decorators Collection Websites. The company owns BlackLocus, Inc., a data analytics and pricing firm, which would bring additional tools and capabilities to support its merchandising team. In 2012, the company introduced various products to its customers, such as the second generation of EcoSmart LED light bulbs, including the only Daylight Downlight LED sold in retail; an improved version of Behr Premium Ultra Interior Paint & Primer in One; appliances from Electrolux, Whirlpool, and Frigidaire; the second generation of Ryobi lithium battery technology for power tools; a ‘click version’ of tile with realistic wood looks from TrafficMaster Allure; and 1 inch cellular window blinds under the company’s Home Decorators Collection brand. In 2012, the company offered various proprietary brands across a range of departments, such as Husky hand tools and tool storage; Defiant door locks; Everbilt hardware fasteners; Hampton Bay lighting and fans; Vigoro lawn care products; RIDGID and Ryobi power tools; and Glacier Bay bath fixtures. It also introduced the HDX brand with products in the tools and hardware, storage, and cleaning categories. The company, through its Eco Options Program, created product categories that allow consumers to identify products that meet specifications for energy efficiency, water conservation, healthy home, clean air, and sustainable forestry. In 2012, its Eco Options Program has certified approximately 5,000 products. Through this program, the company sells products, such as ENERGY STAR refrigerators, dishwashers, compact fluorescent light (CFL) bulbs, EcoSmart LED light bulbs, programmable thermostats, tankless ‘on demand’ water heaters, and other products, enabling its customers to save on their utility bills. It also sells WaterSense-labeled bath faucets, showerheads, aerators, and toilets. In partnership with the U.S. Green Building Council, the company launched a Website in 2012 to help its customers identify products with Leadership in Energy and Environmental Design (LEED) point values. It had approximately 3,500 ‘LEED for Homes’ products sold in its stores and online. The Website, found at www.leed.homedepot.com, is designed to simplify the complexities of building green and arm its customers with the tools needed to navigate the LEED for Homes programs by providing tips, informative videos, and educational content. The company offers its nationwide, in-store CFL bulb recycling program. This service is offered to customers free of charge and is available in the U.S. stores. The company also maintains an in-store rechargeable battery recycling program. Launched and done in partnership with Call2Recycle, this program is also available to customers free of charge in all stores throughout the U.S. In addition to the company’s 18 rapid deployment centers in the U.S., the company operated 33 bulk distribution centers, which handle products distributed optimally on flat bed trucks, in the U.S. and Canada. It also operated 36 conventional distribution centers, which include stocking, direct fulfillment, and specialty distribution centers, in the U.S., Canada, and Mexico. Customers The Home Depot stores serve three primary customer groups: Do-It-Yourself (D-I-Y) Customers: These customers are home owners who purchase products and complete their own projects and installations. The company also offers various clinics and workshops both to impart this knowledge and to build an emotional connection with its D-I-Y customers. Do-It-For-Me (D-I-F-M) Customers: These customers are home owners who purchase materials themselves and hire third parties to complete the project or installation. The company’s stores offer various installation services targeted at D-I-F-M customers who select and purchase products and installation of those products from the company in the store. Its installation programs include products, such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, the company provides professional installation of various products sold through its in-home sales programs, such as roofing, siding, windows, furnaces, and central air systems. Professional Customers: These customers primarily include professional remodelers, general contractors, repairmen, small business owners, and tradesmen. The company offers various special programs to these customers, including delivery and will-call services, dedicated staff, expanded credit programs, designated parking spaces close to store entrances, and bulk pricing programs for both online and in-store purchases. Strategy The company’s business strategy includes customer service; product authority; disciplined capital allocation, productivity, and efficiency; and interconnected retail. Seasonality The company’s business is subject to seasonal influences. Its highest volume of sales occurs in its second fiscal quarter (year ending February 2013), and the lowest volume occurs during its fourth fiscal quarter. History The Home Depot, Inc., a Delaware corporation, was founded in 1978. The company was incorporated in 1978.