Home Depot to close Expo Design Centers, eliminate 7,000 jobs

The world's largest home-improvement retailer is downsizing. Home Depot announced today that it will close 34 Expo Design Centers, the decor-focused little sister to the Home Depot stores, as well as five Yardbirds stores, two Design Center stores, and the HD Bath remodeling business. The move will shear 7,000 jobs, or roughly 2 percent of the company's total workforce.

"Exiting our Expo business is a difficult decision, particularly given the hard work and dedication of our associates in that business and the support of our loyal customers," said Home Depot Chairman and CEO Frank Blake in a release. "At the same time, it is a necessary decision that will strengthen our core Home Depot business."

Wall Street responded favorably to the news, sending Home Depot's stock price up about 5 percent for the day. "We see the announcements as largely positive," wrote Stifel Nicolaus analyst David Schick in a research note, according to Reuters. "Expo was profitable in 2007 . . . but is unlikely to be for five-plus years," he wrote.

Home Depot has not provided a time frame for store closings, but in a statement on its Web site, it said the company will complete home-construction projects that are under way and refund all back orders. For more details on how this news will affect any projects or orders you have with Expo, read the "Special Note to Expo Customers" section on this page and call your local Expo or 800-259-1042 or 800-797-1745.

While the store closings might have you envisioning bargains galore on cabinets, bath fixtures, and the like, remember that retail liquidation sales often carry heavy trade-offs, including voided warranties and strict no-return policies.—Daniel DiClerico

Comments

[david greenberg]

Hunter Douglas WARRENTIES Our Hunter Douglas Gallery will maintain all Hunter Douglas window fashion warrenties for all Home Expo customers. Call 201.342.0110 for details.