The Home Depot

Retailer at a Turning Point

The Challenge:

A Fortune 50 retailer sought a plan to improve performance. Over the prior five years, stock price had stagnated as sales growth slowed, lagging behind the client’s biggest competitor. Customer service and store environment, formerly industry-leading, had slipped, contributing to market share loss.

The Results:

Client shifted focus to reinvest in store environment, customer service, employee morale and supply chain.

  • Invested over $2 billion over the course of a year in their 2,000 stores, doubling spending on maintenance and increasing store staffing levels, even at the expense of short-term results. Brought in more store associates with specialized skills.
  • Streamlined store manager metrics from 35 to 8 measures to allow greater focus on improving service, morale and inventory management.
  • Implemented customer service incentives for their 350,000 associates. Voice of the Customer survey scores increased on all metrics and associate attrition declined.
  • Committed to multi-year investment in the supply chain and inventory management.
  • Divested non-core business to refocus on retail.
  • Client pulled ahead and stayed ahead of competition on “comparable store sales growth” and stock price growth.

Setili & Associates brought new insight … They were critical in helping us define five key strategic priorities to become more successful long term. We started seeing an impact on the stores right away. – Brandon Hayes, Manager, Strategic Bus. Development

How We Did It:

Worked with internal team to identify and evaluate strategic options, assessing the investment required and likely impact on short-term and long-term results.

  • Identified top customer satisfaction drivers via market research.
  • Assessed competitor capabilities and strategy.
  • Benchmarked vs. other retailers to identify strategic options and to identify elements of successful turnarounds.
  • Assessed store performance metrics and interviewed store managers to identify highest-impact actions.
  • Prioritized store maintenance and renovation needs.