Wednesday, June 29, 2005

Home Depot latest big-box chain to experiment with convenience stores

RENEE DEGROSS
The Atlanta Journal-Constitution

Home Depot customers one day will be able to pick up a six-pack of soda and fill up their gas tank in the parking lot if the chain's convenience store test proves a success.

The home improvement giant will begin testing convenience stores in the parking lots of four Nashville Home Depots this December.

Stores will sell gasoline, milk, chips, beer and other convenience items. Two stores will have carwashes.

"Our research continues to show us that consumers are time-starved," said company spokeswoman Paula Smith. "So we know that anything we can do to make the process of shopping easier ... is a good idea."

Other big-box chains, including Costco, Wal-Mart and Kroger, already have gas stations outside some stores.

Analyst Bill Sims, of Smith Barney, said retailers use gasoline as a loss leader and a way to drive traffic to stores.

"If Costco's doing it, and Wal-Mart's doing it, why not Home Depot?" Sims said. "I would think it would be a great traffic driver and more of a one-stop shop."

In recent years, Home Depot has tested small-scale McDonald's and Dunkin' Donuts inside a handful of stores. Home Depot isn't saying which store sites could get convenience stores if the program spreads.

"We have to look at congestion and whether there are other [convenience store] offerings on-site," Smith said. "Until we evaluate the results and make some decisions about moving forward, it's too early to speculate."

1 comment:

  1. Geez, I didn't know people spent their entire lives in Home Depot like they do in Wal Mart.

    I would not want Dunkin Donuts from the Home Depot.

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