New 'Home' for the Holidays

The Home Depot rolled out a new mix of merchandise for the 2006 holiday season, offering, for the first time, high-definition plasma TVs, DVD players and other consumer electronics in its 1,854 stores in the U.S.Select electronics have been available through the chain's catalogs and website in the past, but the eight available SKUs received front-end placement via endcaps. Some stores created full front-end departments for the merchandise, with accompanying signage, HDTV demonstration units and holiday decorations. Some of the signage depicted the products alongside tools and other more typical inventory under a "Great Gifts" message.The electronics SKUs were to be stocked only through the holiday season, according to a Home Depot spokesperson, who did not disclose the chain's future plans for the category.The move into gift-friendly electronics was part of an overall stronger push into seasonal merchandising that resulted in numerous front-of-store endcaps stocked with holiday decorations and other gift items rather than more typical home-improvement fare. Although Home Depot has sold Christmas trees and other holiday items in past years, media reports said that the chain devoted twice as much space to the effort in 2006.This year's program also included a Holiday Gift Card Center endcap with prepaid store cards, ornamental gift boxes and a 48-SKU assortment of greeting cards from Hallmark subsidiary Sunrise Greetings, Bloomington, IN. As did retailers in nearly all channels, Home Depot strongly pushed gift card sales last season and supported the effort heavily with stanchions, banners and other signs as well as merchandising strips throughout the store.The initiative also reflects a general drive in recent years to gain a greater "share of wallet" from customers by offering ancillary products and services. That began several years ago with the introduction of beverages and snacks -- theoretically to save contractors a trip to the c-store to load up for the job site -- and more recently has included tests of in-store Dunkin' Donuts and McDonald's counters. The one-stop concept took a big step forward in 2006, when the chain opened gas stations at four stores (one in northwest Atlanta and three in Nashville) complete with 3,000-square-foot convenience stores.Among other recent initiatives, the chain last summer executed a preliminary partnership with Verizon Wireless to offer cellular service and products in 50 stores. The deal includes branded, staffed kiosks in some locations. The retailer sought to bring greater attention to its cleaning supplies department last August by partnering with Procter & Gamble, Cincinnati, on a signage program offering tips on purchase decisions.

New 'Home' for the Holidays

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