This post is more of a note to myself to do some reasearch on this.
I just saw that Home Depot has posted a loss. I have to think some stores bring this upon themselves. I think they can be profitable, but their location strategy might be working against them. I live in Levittown, NY, and I have 4 Home Depots in easy driving distance (East Meadow, Farmingdale, Freeport, and Westbury). There HAS to be something wrong with that. Throw in 3 Lowe’s in just as easy of a drive (which there are), and there is definately something wrong with that.
“Gee Matt, which one of the 7 home improvment warehouses should I go to today? If I had a coin with 7 sides, I’d flip.”
I’m just guessing, but their margins are probably pretty thin when times are good. And when times are bad, well then they are stuck with a whole lot of inventory in too many stores.