The Home Depot Inc. HD has been proactive with merchandising organization through investments in product categories. In one such move, the company announced its intention to accelerate investments in the reset of outdoor power categories. This will also simplify the primary brands in the category. Earlier, the company completed product reset for its power tools category.
This time it is focused on outdoor power equipment to redefine the brands in this category. The reset initiative is based on its refreshed presentation of the outdoor power category made earlier this year. This focuses on helping customers decide the best-suited equipment for their use. The company’s battery-powered technologies, which have gained popularity with DIY consumers and professional landscapers, are key highlights of the presentation.
Notably, Ryobi, DeWalt, Milwaukee, and Makita are the common battery platforms in its power tool and outdoor power equipment products. This collectively contributes a large share of batteries owned by consumers.
After the completion of the reset, the enhanced portfolio will include the company’s top brands in the category like Ryobi, Makita, DeWalt and Milwaukee. Also, its most trusted brands of gas-powered products such as Toro, Echo, John Deere, Cub Cadet, Honda and Troy-Bilt will be part of the reset. Moreover, the review of products will include the discontinuation of the Ego line of outdoor power equipment.
The company expects the reset initiative to be completed in nearly 1,300 stores across the United States by the end of this year. Further, the product reset in remaining stores is likely to be completed by the spring of 2021.
The company’s stock did not react much after the news. However, the Zacks Rank #2 (Buy) stock has been resilient amid the coronavirus pandemic, driven by its strong fundamentals and actions. Notably, shares of Home Depot gained 20.1% year to date, outpacing the industry’s growth of 18.3%.
Amid the coronavirus pandemic, the company has been gaining from continued store operations as well as its ability to deliver interconnected shopping experience by blending its physical and digital platforms. The company’s flexible interconnected infrastructure helped it quickly adapt to the changing customer preferences amid the coronavirus pandemic in late March. Consequently, it delivered top-line growth of 7.1% in first-quarter fiscal 2020, with overall comps increasing 6.4% and comps in the United States up 7.5%.
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July 22, 2020 at 07:45PM
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Home Depot to Reset Product Category for Enhanced Portfolio - Yahoo Finance
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