Home Depot Direct

www.homedepot.com

The Home Depot's growth strategy is to enhance the core, extend the business, and expand the market. To extend the business, The Home Depot is focused on broadening its retail channels through Home Depot Direct. Begun in May 2005, Home Depot Direct provides customers with an 'endless aisle' of home improvement and décor merchandise through in-store catologs, mail order cataolgs and web sites that enhance and extend the special order offerings in the Home Depot's retail stores.

As part of The Home Depot's direct-to-consumer strategy, Home Depot Direct will fulfill customer demand through three channels - Web, catalogs and kiosks.

HomeDepot.com

Home Depot Direct has more than 30,000 shoppable SKUs on the Web site homedepot.com.

Four million visitors visit the Web site every week.

It also was named the No. 1 home improvement site for online shoppers by Blastradius.com.

Catalogs

Currently, there are four direct-to-consumer catalogs that Home Depot Direct produces.

a Home Depot Direct

Home Depot Direct Outdoor Living

10 Crescent Lane B

Paces Trading Company

Kiosks

Customer self-service kiosks are being rolled out to 250 The Home Depot stores by the end of 2006.

Growth

The Home Depot Direct also is growing through acquisitions. In May 2006, The Home Depot acquired Home Decorators Collection (HDC). HDC is one of the nation's largest direct sellers of merchandise for the home and will expand Home Depot Directs direct-to-consumer base through increased Internet and catalog channels. With HDC, the Home Depot Direct will be a $1 billion business by the end of fiscal 2006.