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Warren Shoulberg As big a deal as this is for Home Depot, it’s not the first time it has tried this strategy. Back in the 1990s, the retailer tested a spin-off store called Expo that featured not only more upscale home improvement products but also the decorating accompaniments, including textiles, tableware and some furniture. The stores took a much more stylish merchandising route than the typical rack-'em-and-stack-'em Home Depot warehouse and truly represented a new approach to the entire home remodeling and redecorating process. But they didn’t work — or at least not well enough for what was then still a rapidly expanding retail operation that may have seen its priorities lie elsewhere. Home Depot closed all the Expo stores around the turn of the century, and while the typical Home Depot store still carries a fair assortment of rugs and a couple of running feet of curtains and draperies, it has never truly revisited this territory — until now. This still seems to be pretty much an online deal, and Home Depot has not said anything publicly about its plans for in-store merchandising of home decor categories. The same goes for physical store plans for The Company Store, although with all the home categories, in-store merchandise pickups are available, as are return-to-store options. Locked in a head-to-head battle with archrival Lowe’s in a mature home improvement business, Home Depot has to look at home decor as a natural product extension, one it can exploit through its existing in-store and online base rather than going into a parallel retail operation. The current struggles of Bed Bath & Beyond, J.C. Penney and the nearly comatose Sears have to have made the initiative that much more promising. Home Depot is the second-largest retailer in America, second to Walmart, and with 2,200 stores worldwide — including just under 2,000 in the U.S.

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