The Home Depot’s China Stores Close

The Home Depot is closing its remaining seven big box stores in China, opting to focus on specialty stores and online offerings in that market.

The Home Depot will maintain two recently opened specialty stores – a paint and flooring store and a Home Decorators Collection store – and is in the beginning stages of developing relationships with several of China’s leading eCommerce websites, a reflection of Chinese customers’ needs and shopping preferences.

The store closings will affect approximately 850 associates, who will receive severance packages and job placement assistance.

“Closing stores is always a difficult decision,” says Frank Blake, chairman & CEO, The Home Depot. “We are thankful for the dedicated service of our store associates in China, and we wish them all the best during this transition.”

While it is closing its big box stores, The Home Depot is maintaining a new formats team to continue research and development activities, as well as approximately 170 associates in China, working in the sourcing offices in Shanghai and Shenzhen.

“We’ve learned a great deal over the last six years in China, and our new approach leverages that experience and reflects our continuing interest in providing value to Chinese customers, as well as our shareholders,” says Blake.

 

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3 comments on “The Home Depot’s China Stores Close

  1. Kyle Baker

    It would be interesting to see some more in depth research into the reason behind closing the stores….are 7 stores just not enough to draw crowds? Is the majority of the inventory readily available on any street corner in China? Are they reversing tracks and moving to India? Very vague reporting on this….

  2. T VanThomme

    Duh..Everything at our Home Depot is made there and cheap thats why people shop there in America. In China you can probaly get the stuff anywhere for the same price.