Home Depot Discounts Power Point

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Roger Holyfield Pro Sales Manager Kansas City

The Home Depot offers discounts to Contractors!!

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MAREI and The Home Depot have teamed up to offer a rebate to MAREI members!! 3

Members receive a 2% rebate on all purchases at The Home Depot. Registration is required!! 4

Volume Pricing Program

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Direct to Jobsite Orders

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Thank You for your business and your time tonight!!! 7

 PSM’S ARE TO BE ACCOUNT FOCUSED  MANAGEMENT OF THE DESKS ARE AT STORE LEVEL AND DM LEVEL  WE NEED TO REFOCUS ON BASICS  ASM’S OVER PRO NEED TO BE ENGAGED FOR ACCOUNTABILITY  PASA’S NEED TO BE CONTINUALLY PROSPECTING FOR NEW BUSINESS

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CCM REVIEW  CUSTOMER CREDIT MANAGEMENT

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Understanding & Analyzing THD Customer Types  Enabled customer understanding by turning 3 years of individual POS transactions into trackable shoppers (i.e. households)  Analyzed 2+ billion POS transactions  ‘Trackable’ spend represents ~85% of annual THD sales (no cash/gift card spend included)  ~31 million known households (name + address); all other households identified by trackable tender only  Worked with dunnhumby, the leader in customer behavior analytics, to analyze customer shopping behaviors

Differentiating Customer Behaviors Consumer

Pro

AM Weekday Shopping Evening Shopping Only 1 Store Frequented Which Departments Purchased Traditional Pro (e.g., Hardware, Electrical) Consumer (e.g., Seasonal/Garden)

Plus other drivers such as commercial credit, number of transactions, etc

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Customer Type Engagement Metrics Pro

Consumer

% of Customers

4%

96%

% of Sales

28%

72%

Spend per year

~$3,000

~$300

Spend per visit

~$95

~$75

# Visits

32

4

# Stores

4

1

# Departments

8

3

# Subclasses

57

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Source: dunnhumby – Sales metrics based on 52 weeks excluding cash & gift card spend, 10% sample grossed to 100%

Current D42 MAP Shadowbox SKU Assortment  Same assortment for all 9 MAP zones  Unchanged assortment for an unspecified period of time (at least 18 months)

Sku # 507765 110531 837674 492191 284858 246733 108011 686743 114343 134525 438557 500615 703552 895370 641846 301174 310227 222402 446586 223155 172187 915150 461442 214012

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Sku Description E/O 16OZ GREAT STUFF GAPS & CRACKS PRO FLOUR ORANGE MARK SPRAY 8 OZ GORILLA GLUE RESP FOR SANDING PAINTED SURF CP 22 OZ FRAM HAMMER MIL FACE NYL VNL G FAT MAX XTREME 25' TAPE MEASURE HUSKY FOLDING LKBACK RZR UTILTY KNIF UTILITY KNIFE BLADE DISPENSER 7" HEAVY DUTY STEEL RAFTER SQUARE SHARPIE FINE POINT BLACK 1000' YELLOW CAUTION TAPE 100 FT METAL CASE CHALK REEL E/O BULK CARPENTER PENCIL-HD 7" ALUM RAFTER ANGLE SQUARE BULK 2"X27' RATCHET TIE DOWN, 10,000 LBS CLOSE-FIT SAFETY GLASSES,CLEAR X-FACTOR EYEWEAR SILVER XF4 SUBCONTRACTOR WORK GLOVE-LARGE FIRM GRIP TRADE MASTER GLOVE-LARGE ULTRA FLEX GEL PRO KNEEPADS WD-40 SMART STRAW 8 OZ. 300 2PK 10 MIL DUCTTAPE-1.89INX60YDS 2' 12-3 RIDGID TRI TAP 50' 12-3 RIDGID CORD

Dept # 22 24 24 24 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 26 27 27

Class # 4 3 4 37 1 1 1 1 1 1 1 1 1 1 3 5 5 5 5 11 31 2 3 3

Class Description INSULATION SPRAY PAINT ADHESIVES TOOLS/SAFETY HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS HAND TOOLS FASTENERS SECURITY/SAFETY SECURITY/SAFETY SECURITY/SAFETY SECURITY/SAFETY STORAGE DEVICES TRAILER AND TOWING AIR CIRCULATION/ACCES. EXT CORD/WORKLIGHT/SURGE EXT CORD/WORKLIGHT/SURGE

Sub Class # 5 6 12 8 2 4 6 6 16 16 16 16 16 16 6 8 8 11 11 13 4 13 2 3

Subclass Description FOAM PROFESSIONAL POLYURETHANES RESPIRATORS HAMMERS TAPES CUTTING TOOLS CUTTING TOOLS MARKING & LAYOUT TOOLS MARKING & LAYOUT TOOLS MARKING & LAYOUT TOOLS MARKING & LAYOUT TOOLS MARKING & LAYOUT TOOLS MARKING & LAYOUT TOOLS TIE-DOWNS PERSONAL SAFETY PERSONAL SAFETY WORK GLOVES WORK GLOVES KNEE PADS LUBRICANTS/GREASE/FUNNEL TAPE INDOOR OUTDOOR

Pro Desk Re-assortment Concept Objective  Merchandise Pro Desk “grab-and-go” shadowbox with highly Pro penetrated and high sales opportunity SKUs Methodology 4.

Evaluate current MAP desk assortment using regional Pro Leadership SKU lists (focus on Pro sales, household penetration, and units) that leverages dunnhumby Pro customer insights

5.

Create optimized regional Pro desk SKU assortments based on findings, including “optional” SKUs for desks with extra space (see Appendix)

6.

Provide and confirm alternate recommendations with Merchants/Pro team

7.

Develop and communicate execution strategy to field teams (see Appendix)

 Used Memphis market to prove implementing methodology generates positive sales $ uplift  Two Memphis Pro Desk SKU change examples are detailed below Different Size of Same Item

Previous SKU

8 ounce WD-40 0.68% Pro household penetration

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Different Item Entirely

New SKU

Previous SKU

12 ounce WD-40

Gorilla Glue

KILZ Primer Aerosol

1.85% Pro household penetration 4x Pro sales of 8 ounce version

0.57% Pro household penetration

5.46% Pro household penetration 16x Pro sales of Gorilla Glue

* Data represents the PRO CUSTOMER shopping the TOTAL STORE in THD US between 52 weeks 10/1/07 and 9/28/08 ** dunnhumby data does not include Cash and Gift Card sales

New SKU

Regional Pro Desk SKU Re-Assortment 19 Regions X 23 SKUs per Pro Desk = 437 Possible Unique SKUs 

All 19 “customized” Regional Pro Desk assortments yielded total of only 42 unique SKUs 



Most Common Pro Desk SKUs (in all 19 desk assortments): SKU# 108011 206699 256462 318435 412235 423599 438557 507765 686743 703552 822388 915147



SKU DESC HUSKY FOLDING LKBACK RZR UTILTY KNIFE METALMASTER STRAIGHT CUT SNIP NS #3 W/ 1/4 BRASS EZ SNAP BOLT KIT WD-40 12OZ. SMART STRAW 4 1/2X1/16X7/8 NORTON MTL CUTOFF BLD E/O NV 14W (60W) SPIRAL SW 4 PK 1000' YELLOW CAUTION TAPE E/O 16OZ GAPS & CRACKS GREAT STUFF UTILITY KNIFE BLADE DISPENSER E/O BULK CARPENTER PENCIL-HD KILZ PRIMER-AEROSOL 394 GP 9 MIL DUCT TAPE-1.89INX55YDS

DEPT 25 25 26 25 25 27 25 22 25 25 24 26

CLASS 1 1 7 31 7 1 1 4 1 1 15 2

SCLASS 6 6 3 4 4 10 16 5 6 16 2 13

Most Unique Pro Desk SKUs (in 5 or less desk assortments): SKU# 223222 335819 233944 514933 528927 277517 421791 515516 641846 214012 697882 697901 734834 865281

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D22 (1 SKU), D23 (2 SKUs), D23 (8 SKUs), D25 (22 SKUs), D26 (2 SKUs), D27 (7 SKUs)

SKU DESC PL PREMIUM ADHESIVE 10.2 OZ GROUT SPONGE WONDER BAR BROWN JERSEY 6PK GLOVES - FITS ALL 100' 12-3 HUSKY CORD 50' 16-3 ORANGE WORKFORCE CORD LIQ NAILS HEAVY DUTY 10 OZ LIQ NAILS HEAVY DUTY 10 OZ VOC 2"X27' RATCHET TIE DOWN, 10,000 LBS 50' 12-3 RIDGID CORD 15A RECEPT 10PK WHITE DECORA 15A RECEPT 10PK WHITE PHENOSEAL-10 OZ CAULK WHITE WHITE LIGHTNING 10 OZ TUBES

DEPT CLASS SCLASS 24 1 12 23 14 5 25 1 13 25 5 11 27 3 3 27 3 3 24 1 10 24 1 10 25 3 6 27 3 3 27 2 3 27 2 3 24 2 2 24 2 2

# Regs 5 5 4 4 4 3 2 2 2 1 1 1 1 1

Reg1 NENG PACC GULF CEN GULF PACC CEN MATL GULF PACNW OVAL SFL NENG MS

Reg2 NJM PACM NOPL MW MS PACN NOPL MW SW

Reg3 NYM PACN OVAL NJM SE PACS

Reg4 OVAL PACNW SW NOPL SW

Reg5 SE PACS

Northern Plains Region Pro Desk Re-assortment Sku # 507765 461457 421791 984590 822388 655095 108011 206699 686743 233944 438557 703552 895370 126724 479666 553471 514933 412235 318435 915147 256462 423599 277525

Sku Descr E/O 16OZ GREAT STUFF GAPS & CRACKS XL GROUTING SPONGE LIQ NAILS HEAVY DUTY 10 OZ ALEX PLUS WHITE 10.1 OZ. KILZ PRIMER-AEROSOL 25' X 1-1/4" FAT MAX TAPE HUSKY FOLDING LKBACK RZR UTILTY KNIF METALMASTER STRAIGHT CUT SNIP UTILITY KNIFE BLADE DISPENSER WONDER BAR 1000' YELLOW CAUTION TAPE E/O BULK CARPENTER PENCIL-HD (countertop) 7" ALUM RAFTER ANGLE SQUARE BULK 4PC RATCHETING TIE DOWNS 1-5/8" COARSE DRYWALL SCREW 1 LB (countertop) ENERGIZER AA 36-PACK BROWN JERSEY 6PK GLOVES - FITS ALL 4 1/2X1/16X7/8 NORTON MTL CUTOFF BLD (countertop) WD-40 12OZ. SMART STRAW 394 GP 9 MIL DUCT TAPE-1.89INX55YDS NS #3 W/ 1/4 BRASS EZ SNAP BOLT KIT E/O NV 14W (60W) SPIRAL SW 4 PK 100' 16-3 ORANGE WORKFORCE CORD

Dept Class # Sub-Class # 22 4 5 23 14 5 24 1 10 24 2 2 24 15 2 25 1 4 25 1 6 25 1 6 25 1 6 25 1 13 25 1 16 25 1 16 25 1 16 25 3 6 25 3 10 25 5 10 25 5 11 25 7 4 25 31 4 26 2 13 26 7 3 27 1 10 27 3 3

Shaded records indicate change from current MAP assortment

Northern Plains Pro Customer Financial Metrics (Historical Annual Pro Performance*) New Mandatory SKU Assortment** Dollar Sales Units Sold Number of Transactions Pro Households Pro Household Penetration Spend per Household Trans. per Household Price per Unit # Pro Leadership Skus

Current MAP Assortment**

$1.96MM 489K 212K 81K 40% $

24.04 2.6

$

4.00 23

Dollar Sales Units Sold Number of Transactions Pro Households Pro Household Penetration Spend per Household Trans. per Household Price per Unit # Pro Leadership Skus

Projected Incremental Region Sales of New PRO Desk Assortment: $100-$200K 14

* Data represents the PRO CUSTOMER shopping the TOTAL STORE in NPL Top 6 MARKETS (101, 129, 164, 262, 185, 147) between 52 weeks from 2/4/08 to 2/1/09 ** dunnhumby data does not include Cash and Gift Card sales

$1.08MM 230K 99K 51K 25% $ 21.06 2.0 $

4.67 10

Regional Pro Desk SKU Re-Assortment – Optional SKUs 

Due to differences in Pro Desk layouts, an “optional” list of SKUs were developed to fill extra space Northern Plains Region Optional SKUs SKU # 879282 483689 303121 222343 184861 628375 964501 793616 501714

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SKU Descr SHIMS - HOMEOWNER DIY PACK 1 7/8"X300' MESH JOINT TAPE WHITE 1 1/2" LONG MASK BLUE MASKING TAPE 3 PK PERFORMANCE SILVER KNIT-3/8"NAP KNIFE RETRACTABLE HUSKY 6 IN 1 REVERSIBLE S/D E/O 10PK PENCILS & VERSA SHARPENER 7 1/4IN X 24T DIABLO SAW BLADE COTTON TERRY TOWELS - BAG OF 24

SubDept Class # Class # 21 15 4 22 12 5 24 5 10 24 7 21 25 1 6 25 1 7 25 1 16 25 7 6 28 4 20

Pro Desk Re-Assortment Execution Strategy Objective 

100% compliance to the re-assortment plan (no deviation from ‘Mandatory’ or ‘Optional’ SKU lists).

Execution 5.

1-2 store associates need to dedicate ~2 “non-customer facing” hours for re-assorting the Pro Desk merchandise (preferably before opening or after close).

6.

Remove SKUs (and associated price labels) from the desk that are not on the “New Mandatory SKU Assortment” slide and place merchandise back into current planogram location. If planogram space not available, work with DM/RMM to execute sell through strategy of limited stock.

7.

Assort shadowbox and countertop with identified ‘Mandatory’ SKUs. If merchandising space remains, fill with SKUs from the ‘Optional’ list. Add new price label for each newly assorted ‘Mandatory’ and ‘Optional’ SKU.

8.

Daily set integrity is very important, so keep sufficient, yet manageable on-hand quantities of each SKU at the desk.

Questions



16

Call your Divisional Merchandising VP Pete Capel @ 770-384-2242

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