Home Depot Cancelling 50 Stores in Pipeline, Closing 15 Stores

This is national news, but I thought it would be of interest.

Home Depot Cancelling 50 Stores in Pipeline, Closing 15 Stores;
Home Improvement Retailer Significantly Cutting Square Footage Growth & Capital Expenditures

The Home Depot updated its square footage growth plans as part of a strategic plan to improve cash flow, provide stronger returns for the company and invest in its existing stores. While the country’s largest home improvement retailer re-stated its intentions to open 55 new stores in fiscal 2008 (it opened 87 stores in 2007 for a 4.5% square footage growth), it is curtailing growth in 2009 and beyond to 1.5% growth in square footage per year.

Further, Home Depot is backing out of approximately 50 U.S. stores that have been in its new store pipeline, in some cases for as long as 10 years. The retailer is taking a $400 million hit associated with this decision related to its capitalized development cost and obligations associated with those future store locations.

Home Depot said this initiative will reduce capital spending by $1 billion over the next three years. For fiscal 2008, the company estimates capital spending at $2.3 billion, down from $3.6 billion last year.

The retailer is also shuttering 15 underperforming U.S. stores. The company said this decision was a result of a thorough evaluation of its 2,258-store portfolio. Home Depot expects to record a $186 million loss related to these store closings.

The 15 stores being closed, as provided by the company, are as follows:

Store #2015 East Fort Wayne, Indiana
Store#2032 Marion, Indiana
Store#2310 Frankfort, Kentucky
Store#379 Opelousas, Louisiana
Store#2819 Cottage Grove, Minnesota
Store#6901 East Brunswick, New Jersey
Store#6904 Saddle Brook, New Jersey
Store#6171 Rome, New York
Store#3702 Bismarck, North Dakota
Store#3874 Findlay, Ohio
Store#3865 Lima, Ohio
Store4552 Brattleboro, Vermont
Store4932 Beaver Dam, Wisconsin
Store4933 Fond du Lac, Wisconsin
Store4913 NW Milwaukee, Wisconsin

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