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Home Depot

Submitted by acura32ai on March 25, 2008

Category: Miscellaneous
Words: 2043 | Pages: 9
Views: 128
Popularity Rank: 79,123
Average Member Grade: N/A (Add a Comment / Grade this Paper)

David Ronca
Retail Project
Professor Davis
24 March 2008

The Home Depot was founded on June 22, 1979 by Bernie Marcus and Arthur Blank in Atlanta, Georgia. During the 1970’s Marcus and Blank had held executive positions in a chain of 60 local home improvement stores known as Handy Dan Home Improvement Center. Demonstrating strong commitment they excelled through the ranks, putting themselves in commanding positions they started “experimenting with discounted merchandise within the local chain” (Bernard) in a more do it yourself atmosphere. The attempt of a developed a plan to sell the low priced goods in a do-it-yourself retail store was a local success. In 1978 The Handy Dan business was completely bought out and prompted the firing of Marcus and Blank. That later became the best thing to ever happen to them, they decided to go into business together. Investment banker and friend Ken Langone provided the initial investment of $100,000 to secure the necessary capital. “Unable to finance construction of a prototype store, the men bought two defunct Treasure Island Discount stores in Atlanta and set up shop as The Home Depot“ (Bernard). Beginning with 18,000 different products, low priced, a simple open warehouse setting, and a hired knowledgeable staff. On the first and second day of business they had kids out front hand out Home Depot money as a thank you to customers for visiting the store. After a couple days they got “hopeful when a satisfied customer returned with a bag of home grown okra as her way of saying thank you for the good shopping experience she had” (Bernard). Soon, word spread and the customers flooded in so much that within twelve months, two more stores had opened.
After two successful years “Home Depot held its IPO in 1981 and listed on the New York Stock Exchange three years later under the ticker - HD” (McMenimon). The company was growing, opening stores in Georgia, Florida,...

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