Home Depot Acquires Chinese Home Improvement Chain
Joining with U.S. Commerce Secretary Carlos Gutierrez and Vice Minister Yi Xiaozhun of the Chinese Ministry of Commerce, The Home Depot last week announced that it has signed a definitive agreement to acquire The Home Way, China’s first home improvement retailer.
The world’s largest home improvement retailer, The Home Depot is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB.
With The Home Depot pursuing opportunities to expand its business globally, The Home Way will provide the company with an immediate retail presence in China with 12 stores in six cities.
China’s home improvement market is valued at nearly $50 billion today and has been growing at a compounded annual rate of 20%.
Approximately 70% of home improvement spending in China is for the completion of interior space in new homes, a solid growth opportunity for The Home Depot, which has strength in merchandise and services geared to finishing out a home.
“This acquisition provides us with a great point of entry in one of the world’s largest and fastest-growing improvement markets,” said Bob Nardelli, chairman, president and CEO of The Home Depot. “The Home Way is a strong brand that is already established as a value and price leader among Chinese consumers.”
The Home Depot entered the Canadian market in 1994 and Mexico in 2001, and today holds the number-one position in both markets.
Founded in 1996 by Du Sha, its chairman and CEO, The Home Way is headquartered in Tianjin, one of China’s largest cities and a primary development zone for the government; it is located 85 miles southeast of Beijing.
The Home Way was the first “big box” home improvement retail chain in China, and its stores average 90,000 square feet of selling space. The Home Way employs some 3,000 associates in China, including Tianjin, Beijing, Xi’an, Qingdao, Shenyang and Zhengzhou.
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