Home Depot to upgrade stores
Chain aims for almost $120 billion in sales
Home Depot, the world’s largest home improvement retailer, plans to invest more in its stores and employees in the next three years as it pursues a new target of almost $120 billion in annual sales.
Ahead of an annual meeting with analysts and investors on Wednesday, the Atlanta-based company also announced plans to buy back as much as $15 billion in stock. The retailer reiterated earlier earnings and sales growth forecasts for the current year.
Home Depot vowed to spend more on its supply chain and customer experience, aiming to adapt to the upheaval rocking the retail industry.
Though the chain largely has been immune to customers defecting to Amazon.com — it’s usually impractical to buy a two-by-four of lumber online — management wants to make sure Home Depot doesn’t get passed by.
“The retail landscape is changing at unprecedented rates,” CEO Craig Menear said in a statement.
Home Depot has been benefiting from a rebound in U.S. housing prices, which has spurred owners to spend more on fixing up their properties.
Under its new long-term goals, sales may reach as much as $119.8 billion in fiscal 2020, growing 4.5 percent to 6 percent annually.