Home Depot Cuts Jobs, Focuses on Supply Chain improvements

According to an article in the WS,J Home Depot is cutting 1,000 jobs.  CEO Frank Blake was careful to note the cuts are not due to business performance or economic concerns, but rather a reorganization of the business. The article contained a couple interesting insights into Home Depot’s business: they expect to add an average of 1.5% annually to their retail square footage, or about 20 stores in 2010; and they will focus spending in 2010 on improving supply chain and existing stores. Also interesting in the article, is research from Harvard University’s Joint Center for Housing Studies suggesting remodeling activity will bottom out in Q1, 2010 and then begin to increase. If that prediction is accurate, it could be a good sign for Home Depot.