Home Depot's Disaster Preparedness Initiatives Set to Boost Retail Sales
Many of the company's several disaster preparedness initiatives such as its water conservation workshops could spur sales growth and contribute to home improvement recovery.
According to PWC, 20 of the 30 most costly insured catastrophes worldwide from 1970 to 2011 have occurred since 2001. With the exception of the 9/11 terrorist attacks, they were all natural disasters.
Home Depot hosted a slew of water conservation workshops at 1,977 of its U.S. stores in April of this year. "We're committed to helping our customers solve everyday home improvement challenges, and for many, water conservation is one of those challenges," said Joe McFarland, president of the Western Division for Home Depot.
"We have the products and our associates have the know-how to help our customers identify water-saving solutions and implement them at home. These workshops help us to share that knowledge and inspire residents to take action."
Home Depot also recently began selling a new collection of smart home mobile device controlled products earlier this month in close to 2,000 of its U.S. stores.
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In a disaster, consumers seek the necessary tools to re-establish their homes. A significant investment is spent on behalf of American consumers on products which in return drive Home Depot's post-disaster sales and growth.
The Home Depot Foundation has donated over $80,000 in nonprofit partnerships. The company is also a member of the American Red Cross Annual Disaster Giving Program (ADGP) contributing $500,000 annually. The donations allow Red Cross to immediately reach individuals and families affected by disaster across America.
The retailer services a critical need for local communities when catastrophe strikes. The Home Depot Foundation and its associates are sought after during these crises for the right resources, support and products to rebuild.
Home Depot will evolve to meet demands for products and innovative solutions. According to PWC, demand for such services and products has already emerged and is likely to significantly increase in the next five years.
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For investors, Home Depot has a comprehensive disaster preparedness strategy in place to support community resilience. This in return, enables the company to be supportive within volatility in the market. Home Depot's initiatives demonstrate innovative approaches which are able to benefit communities during times of challenges.