Monday, November 17, 2008
Home Depot Aims For Long-Term Growth with Spanish Site
It seems like only yesterday,houses were popping up left and right, but the mortgage crisis brought all the construction momentum to a screeching halt.
When the hammers stopped and the sawdust settled, home improvement retail leaders such as Home Depot (NYSE:HD) and Lowes (NYSE:LOW) were left with a market that dwindled to a fraction of its size. Today, Lowe's reported a 24% drop in net profit for the third quarter, and Home Depot is selling for $20 per share, compared to $33 at the start of 2008.
Today, Home Depot launched homedepotespanol.com, which contains all of the products found on the English site. Personally, I think this move was made because Home Depot is focusing on a market with great potential for long-term growth: Spanish speaking residents. If the stats Forrester Research Inc (Nasdaq: FORR) provided the Wall Street Journal are accurate, Home Depot's site will pay huge dividends over the next decade and beyond.. Forrester's stats revealed
- One-fourth of Hispanics must be served in Spanish if retailers want their business.
- More than half of Hispanics who shop online (7.1 million people) prefer Spanish.
- Hispanics accounted for one-half of the U.S. population growth between 2004 and 2005 and are expected to reach 102.6 million people by 2050.
- Hispanic shoppers online to exceed 17 million by the year 2011
Regardless of your poltical stance or personal views on our immigration influx,the surge is undeniable and Home Depot should already have an inside advantage on the competition. In the same article,a Lowe's spokesperson admitted that they've considered a Spanish site, but hasn't implemented a timeline to complete such a project. In other words, Lowe's leadership has conceeded the fact that they haven't devised a plan to compensate for its huge loss of shoppers.
By Matt O'Hern at 12:58 PM | Comments (0)