Big Box Bulletin
Home Depot Changes Strategy for Mexico
Atlanta-based Home Depot has changed the strategies it uses in Mexico. The average household income in Mexico is only 20 percent of that in the United States, which means that the retailer has to be more creative in marketing and product placement, according to the
South American Business Information.
The company’s new Tijuana store, its tenth in Mexico, has been created to avoid the difficulties that it experienced in its previous venture in the Latin American market. It sells food and has a large credit department, as well as domestic appliances, which its U.S. customers will not find in their domestic Home Depot outlets. The opening of the store saw 16,000 visitors on the first day, with 4,600 making a purchase. The company is looking to make its second entry into non-U.S. markets more successful than its first, as the weak U.S. economy and saturation in that market makes such expansion a necessity. It plans to do this mainly by means of acquisitions, according to the South American Business Information.
Home Depot Pays Big Bucks for Land
Atlanta-based Home Depot recently paid $10 million dollars for a 10-acre piece of land in Nashua, N.H., according to a recent article in Business NH magazine.
“New Hampshire is an attractive retail environment for one reason: no sales tax,” said Thomas Farrelly, senior director of the Manchester office of Cushman & Wakefield, an international firm offering commercial real estate services.
|Big Boxes Add to New York Area Stores
Wilkesboro, N.C.-based home improvement retailer Lowe’s Cos. said it “plans to invest about $1 billion to add stores in the greater New York City area over the next several years, intensifying competition with industry leader Home Depot in a key U.S. market,” according to Reuters.
The company has already opened a store in Roosevelt Field, N.Y., and Holmdel, N.J., and will begin work on its first New York store, located on Staten Island.
Lowe’s also plans to add five new stores in Northern New Jersey, resulting in approximately 1,000 jobs, an investment of $80 million to $100 million, according to the company. Lowe’s will begin construction on stores in Hackettstown, Rockaway, Union, East Brunswick and Jersey City, N.J.
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