Atlanta, Georgia, United States (4E) – The US retail President for Home Depot Inc., Craig Menear, would replace Frank Blake as the box retailer’s new CEO. The assumption into office would occur in two months, allowing the company a new CEO at a time of slow recovery in the United States.
Menear’s predecessor would retain the title of chairman, after serving as CEO for seven years. Menear, a long time employee of Home Depot, Inc. would become a member of the board. Prior to becoming CEO, Menear oversaw Home Depot’s supply chain network, overall marketing and digital business.
In a statement, outgoing CEO Blake said, “Craig has taken on increasing leadership responsibility over the last several years and has excelled in all his role(s). As a long-time Home Depot veteran, Craig lives our values and embodies our culture. He’ll do an outstanding job leading our company in the years ahead.”
Under Blake’s leadership, he supervised a major renovation of the do-it-yourself retailer. With that, he was able to restore employee morale through a revisioning their service orientation as well as removing workers from back rooms and making them part of the sales floor. He also was able to make both the supply chain and technology systems more efficient. He was also in charge when the price of the retailer’s stock increased by 100%.
The box retailer had earned USD79 billion in revenues in 2013. It is now in a transitional phase, as more and more Americans choose to do their shopping online instead of their physical stores. Now, it’s entire inventory of products is made available online and this has accounted for about 4% of its overall sales.
The succession is part of an overall plan, putting the plan in motion last February, when it appointed Menear as US retail president. The company also put him in charge of the company’s operations, which is about 2,000 stores in the United States.
Wall Street responded positively to the succession done at Home Depot. Barclays Capital Market analyst Alan Rifkin said, “We believe that Home Depot’s successes since 2009 have been based in large part on its impressive marketing strategy.” He added, Home Depot was ‘in good hands’ with Menear at the helm.
Earlier this week, Home Depot’s stock value reached its all time high when it announced its second quarter net income increased 14% to an amount of USD2.05 billion. The main revenue generating item are appliances. For the last six years, the company has either reached or gone over analysts estimates. The streak ended in 2014 after cold weather and the late spring had held back sales.
In an interview back in April, incoming CEO Menear said, “We need to transform Home Depot to allow customers to shop when, where and how they want to.” There are also plans to spend another USD1.5 billion, as confirmed by Home Depot CFO Carol Tome. The expenditures would be in ’tilting investments more toward interconnected retail and technology as we try to meet the needs of our changing customers.’