The Home Depot Inc. is testing eagerly a new business opportunity – the “Do-It-Yourself” automotive segment.
Carol Tomé, chief financial officer for Atlanta-based Home Depot since 2001, disclosed Monday the company’s interest during a talk to the Rotary Club of Atlanta.
In response to a question about what was the next area of opportunity for the company, Tomé said the company currently had “Do-It-Yourself Automotive” in pilot “right now” in some of its stores.
“And they make lots of money,” she said as she exited the stage. “Stay tuned.” After her talk, Tomé said Home Depot has pilots in about 50 stores in select markets across the country.
“We really like what we are seeing,” she said. “It’s replacing your windshield wipers and spark plugs. It’s a natural extension of what we do. I like what I see.”
Tomé said many of the contractors who are Home Depot’s top customers are hands-on people who are able to work on their cars. By selling automotive parts, they will be able to do more one-stop shopping.
About 4 percent of Home Depot’s customers account for 40 percent of its business, she said.
Asked when Home Depot might implement the DIY automotive business company-wide, Tomé said she did not know and the decision had not yet been made. But she added such a decision would not be made at the board level by the company’s executive team.
“It will be our decision,” she said.
She noted the company had piloted less successfully another line of business.
“We also piloted pet food, but that didn’t turn out so well,” Tomé said.
Sep 22, 2014, 2:55pm EDT
Maria Saporta
http://www.bizjournals.com/atlanta/news/2014/09/22/the-home-depot-piloting-the-do-it-yourself.html
Quote:
About 4 percent of Home Depot’s customers account for 40 percent of its business, she said.
Pareto!