Home Depot to slow new store openings

As noted last week (see "Home Depot going pro" below) HD is emphasizing professional business as a hedge against the challenge in the consumer segment from Lowes. This was confirmed when HD announced their plans to analysts.

Though Home Depot said it would slow new-store growth to 400 to 500 through 2010, roughly half the number opened in the previous five years, its plan to derive more sales from professional contractors was seen favorably by analysts....

Although sales to contractors is only 4% of HD's business today, it is projected to reach 18% in 2010. They are also pushing for growth in services/installation, and international expansion.

Lowes, by contrast, will be opening 150-160 stores per year on 2006-07. If that keeps up (a big "if"), Lowes will be closing in on HD in store count by 2010.