Inventory Analysis: Home Depot, Nordstrom and Cold Water Creek.

2247 Words Jan 15th, 2006 9 Pages
As three of America's leading retailers, Home Depot, Nordstrom, and Cold Water Creek, are responsible for over $80 billion in annual sales. Retail industry analysts look for commonalities in inventory management reporting in order to track company's ability to move inventory and maximize pricing strategies and avoid having to discount obsolescent inventory thus affecting profit. Through analysis of a company's inventory management ratio, outside investors and inside management can track the number of times each year a company turns its inventory. Industries such as retail are extremely sensitive to inventory management as many retail products have short shelf lives due to cyclical inventory and technological advances.

Through an analysis
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Appendix A

Home Depot.

The Home Depot, Inc. (The Company) is the largest home improvement retailer in the world and the second largest retailer in the United States. The Company has been publicly traded since 1981 on the New York Stock Exchange under the ticker symbol "HD" and is included in the Dow Jones Industrial Average and the Standard & Poor's 500 Index.

Home Depot stores are full-service; warehouse type stores that stock up to 50,000 inventory items such as building materials, home improvement supplies, décor, and lawn and garden supplies. Customers of Home Depot include companies and individuals.

At the end of fiscal year 2004, the company operated 1,818 The Home Depot stores and 54 EXPO Design Center stores which, are primarily for home remodeling and decorating. The company also operates five Home Depot Supply stores and 11 The Home Depot Landscape Supply stores, which focus on the professional customer.

During fiscal 2004, other business operated under The Home Depot Supply brand, which distributes products and sells installation services primarily to business and governments through the following companies: Apex Supply Company, Your Other Warehouse, The Home Depot Supply, White Cap Construction and HD Builder Solutions group. The Company also has two stores called The Home Depot Floor Store that primarily sells

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