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— CH. 1 · FOUNDING AND EARLY EXPANSION —

Home Depot

~6 min read · Ch. 1 of 7
7 sections
  • On the 22nd of June 1979, two stores opened in metro Atlanta. One sat in Doraville while the other stood on Memorial Drive in Decatur. These locations were originally Treasure Island hypermarkets leased from J.C. Penney. Bernard Marcus and Arthur Blank co-founded The Home Depot that same year with help from investment banker Ken Langone. They secured capital to build home-improvement superstores larger than any competitor facility. By the 22nd of September 1981, The Home Depot went public on NASDAQ raising $4.093 million. The company joined the New York Stock Exchange on the 19th of April 1984. Branching out of Georgia into Florida began in 1981 with stores opening in Hollywood and Fort Lauderdale. By 1984, The Home Depot operated 19 stores generating over $256 million in sales. To enter the Dallas market, they acquired Bowater Home Center for $40 million on the 31st of October 1984. Mid-1980s expansion created financial difficulties causing earnings to fall by 42% and debt to rise to $200 million. A stock offering of 2.99 million shares at $17 per share helped restructure debts. In 1989, The Home Depot became the largest home improvement store in the United States surpassing Lowe's.

  • Former General Electric executive Robert Nardelli became CEO and president of The Home Depot in 2000. On the 2nd of January 2007, Nardelli resigned after a six-year tenure amid complaints about his heavy-handed management. His pay package totaled $123.7 million excluding stock option grants over five years while stock performance lagged behind competitor Lowe's. Frank Blake succeeded him as CEO. Blake agreed to a much more conservative compensation package heavily dependent upon company success. Blake repudiated many strategies from his predecessor and reportedly has not spoken with Nardelli since his departure. In August 2014, it was announced that Frank Blake would step down as CEO. Craig Menear replaced him effective the 1st of November 2014. Menear joined The Home Depot in 1997 serving in various management roles including merchandising vice president. He served as senior vice president of merchandising from August 2003 to April 2007. In January 2022, Craig Menear stepped down as CEO and president effective the 1st of March 2022. Ted Decker replaced him as the new chief executive officer.

  • In 2021, the company employed 490,600 people generating more than $151 billion in revenue. As of 2020, Home Depot ranked No. 26 on Fortune 500 rankings by total revenue. For Q2 of 2020, sales reached $38.1 billion representing growth of 23.4% from the previous year. Net earnings for three months ending August 2 rose 27% up to $4.3 billion. Revenue grew due to Americans staying home during the COVID-19 pandemic. In Q3 for 2020 ending November 1, revenue hit $33.5 billion showing a 24 percent year-on-year increase. The table shows revenue climbing from $73,094 million in 2005 to $157,403 million in 2023. Employee counts grew from 325,000 in 2005 to 518,100 in 2023. Stock prices fluctuated significantly rising from $25.46 per share in 2005 to $303.98 in 2023. In February 2023, Home Depot announced spending $1 billion to raise hourly employee wages. On the 28th of March 2024, the company agreed to acquire SRS Distribution for $18.25 billion. They also bought Gypsum Management & Supply Inc. for approximately $4.3 billion finalized in September 2025.

  • Home Depot operates stores across all ten provinces of Canada and all thirty-two Mexican states plus Mexico City. The Canadian unit was created with purchase of Aikenhead's Hardware acquired in 1994 for $150 million. All Aikenhead's stores were later converted to The Home Depot format. Home Depot entered the Mexican market in 2002 acquiring Del Norte home improvement chain. Expansion continued in 2004 buying Home Mart then second-largest retailer in Mexico. In February 2025, they announced investing $1.3 billion over three years planning five new stores annually generating 12,000 jobs. China operations began December 2006 acquiring The Home Way giving immediate presence with twelve stores. By April 2011, last Beijing store closed making it fifth closure in two years. September 2012 announcement shut down all big box stores retaining only two specialty locations. Lack of success attributed to disconnect between do-it-yourself ethos and Chinese culture preferring finished products. First South American store opened Peru in 1993 but closed following year due to low sales. Chilean partners Falabella bought out five Chilean Home Center stores October 2001 rebranding them Home Store. Argentine stores sold to Cencosud company rebranded as Easy stores becoming second largest home improvement firm in region.

  • San Diego maintenance company Maintenance Warehouse purchased by The Home Depot in 1997 for $245 million. Apex Supply acquired in 1999 serving wholesale plumbing and HVAC markets. Both entities rebranded 2004 as The Home Depot Supply. Hughes Supply largest home construction wholesaler acquired 2006 for $3.2 billion integrated into HD Supply division. Five months later sold HD Supply consortium including Carlyle Group Bain Capital Clayton Dubilier Rice each buying one-third stake. the 22nd of July 2015 acquisition of Interline Brands from P2 Capital Partners cost $1.6 billion fully integrated August 2016. December 2020 purchase back of HD Supply totaled $8 billion. January 2014 Blinds.com acquired by The Home Depot founded 1993 by Jay Steinfeld. Online presence of The Company Store acquired 2017 from Hanover Direct originally founded 1911. Compact Power Equipment Inc acquired the 6th of July 2017 providing equipment to over 1,000 North American locations. SRS Distribution based McKinney Texas acquired the 28th of March 2024 for $18.25 billion. Gypsum Management & Supply Inc Tucker Georgia bought late June 2025 finalized September 2025.

  • Seventy-three percent campaign contributions went Republican candidates 2005-2006 US elections. CEO Bob Nardelli friend of President George W Bush hosted garden reception fundraiser the 20th of May 2004. Home Depot contributed maximum $250,000 second inauguration President George W Bush 2005 among fifty-three entities. April 2021 Black faith leaders Georgia called nationwide boycott after company failed stand against Election Integrity Act 2021. Governor Brian Kemp criticized boycott calling it insanity putting partisan politics ahead people paychecks. March 2018 donation $50 million train 20,000 construction workers next decade using money from Home Builders Institute. Program trains veterans U.S Army soldiers high school students disadvantaged youth addressing shortage construction workers. Team Depot program since 1993 provides grants veteran-based organizations local store volunteers benefit veterans. Company donated $50 million to Georgia Emergency Management Agency Ready Georgia campaign increasing emergency preparedness children. In May 2025 White House official Stephen Miller directed ICE target Home Depot day laborers find illegal immigrants deport. Washington Post reported ICE agents conducted immigration sweep Friday Westlake Los Angeles parking lot detained sixteen people. Anti-ICE protests occurred Mercer County New Jersey Los Angeles Ladera Heights Greenfield Indiana New York City following raids.

Common questions

When did The Home Depot open its first stores and who co-founded the company?

The Home Depot opened its first two stores on the 22nd of June 1979 in Doraville and Decatur. Bernard Marcus and Arthur Blank co-founded the company with assistance from investment banker Ken Langone.

Who served as CEO of The Home Depot after Frank Blake stepped down in 2014?

Craig Menear replaced Frank Blake as chief executive officer effective the 1st of November 2014. Ted Decker succeeded Craig Menear as CEO effective the 1st of March 2022.

What were the financial results for The Home Depot during the COVID-19 pandemic in 2020?

Home Depot generated more than $151 billion in revenue while employing 490,600 people in 2021. Sales reached $38.1 billion for Q2 of 2020 representing growth of 23.4% from the previous year due to Americans staying home.

How did The Home Depot expand into international markets like Canada and Mexico?

The Canadian unit was created by purchasing Aikenhead's Hardware in 1994 for $150 million. Home Depot entered the Mexican market in 2002 by acquiring the Del Norte home improvement chain.

When did The Home Depot acquire SRS Distribution and what was the cost?

The company agreed to acquire SRS Distribution on the 28th of March 2024 for $18.25 billion. This acquisition is based in McKinney Texas and represents a major expansion into wholesale distribution.