Home Depot Landscape tills Dallas market - Home Depot Landscape Supply

DSN Retailing Today, Feb 24, 2003 by Debbie Howell

ARLINGTON, TEXAS -- The Home Depot's test of a retail concept targeting avid gardeners and professional landscapers expanded to its second major market earlier this month with the opening of a store in the greater Dallas area. The fourth Home Depot Landscape Supply, which opened Feb. 13, essentially mirrored the first three stores that opened in the Atlanta market. Another has since opened in Atlanta, and four more are in the works for Dallas.

Modifications to the concept included reducing the overall number of signs and switching to an overhead irrigation system. However, except for regional differences in live goods, no major layout or merchandise changes were made. As in the Atlanta-area stores, the 12,000-square-foot interior part of the store is split with one side targeting average consumers and the other professional landscapers. The store has a separate entrance and checkout for pros.

Houseplants, chemicals and pottery make up the bulk of the consumer side, while irrigation, landscaping supplies and tool rental are found in the pro section.

Outside, a 25,000-square-foot open-air greenhouse carries seasonal plants, shrubs and flowers. Adjacent is an uncovered contractor yard with larger plants and trees plus bulky landscaping supplies, such as irrigation pipe and patio stones.

With the small number of changes noted at the store, Home Depot appears pleased with the prototype. Todd Williams, president of Home Depot Landscape Supply, described customer response to the stores in Atlanta as favorable. When asked if the units were profitable yet, he said they were "meeting our expectations." The first Atlanta-area store opened in September.

"We think we did pretty well hitting on what the customers want," Williams said. "The pilot helped us to refine the concept to things we could apply in this store."

Although it's much too early to anticipate a rollout, all signs appear to be pointing in that direction. "We'd like to think we could make this work in any market," Williams said, though the company will first test out response in Sunbelt states where warmer weather makes the business more year-round in nature.

As compared to the garden center of a Home Depot, the landscape supply store focuses on live goods and landscaping supplies. The stores do not sell patio furniture, garden decor, barbecue grills, power tools or pool supplies.

To meet the quantity and quality needs of pros, selections in live goods are much broader and deeper than found at a Home Depot garden center. Larger trees and bushes are available, including some up to 30 feet tall.

"You wouldn't see this number of snapdragons" at a Home Depot, added Williams, pointing to an extensive row of the spring flower.

The idea behind the landscape supply store is to grab a larger share of the professional landscaping market and serve the needs of avid gardeners. Live goods sales in the United States are estimated at between $30 billion and $40 billion.

So far, Williams said the concept is gradually winning over pros, though he added it takes time to develop relationships. The goal of Landscape Supply is to work toward a customer base that is half pro, half consumer. Home Depot's competitive pricing may give it an advantage in this area.

The next four Dallas-area Landscape Supply stores will open this spring in Plano, Grapevine, Lewisville and Dallas. The unit in the city of Dallas will test a regular Home Depot adjacent to Landscape Supply at a former Kmart site.

Beyond Dallas and Atlanta, Home Depot hasn't indicated what market may be next. The landscape store joins other new concepts Home Depot has added in recent years, including Expo Design Center, The Floor Store and Home Depot Supply.