Home Depot: Rebuilding its image by rebuilding on Gulf Coast

On the one year anniversary of Hurricane Katrina, Home Depot, along with major home improvement competitor Lowe's Cos., is trying to expedite the rebuilding process for Gulf Coast residents. Like a century or more ago when customers could buy a complete house kit from Sears and have it shipped out west by train, Lowe's is offering 4 "Katrina cottage" kits. These are simple, small homes that can be built at a cost of $45-$55 per square foot, a substantial savings. Home Depot is working with a group to make modular houses available to residents of Pass Christian, Mississippi. Home Depot Foundation will provide $60,000-$80,000 towards the cost of these modular homes for at least 15 residents. The hope is that other groups will also want to sponsor a modular home for a family once these initial homes are built. Anything will be better than housing thousands of people in FEMA trailers for years to come.

Home Depot is still trying to recover from wounds inflicted on itself at the May annual meeting at which CEO Bob Nardelli refused to answer questions regarding his decision to change the way Home Depot reports its sales figures. While all is by no means forgiven, Home Depot has taken several steps recently to accommodate irate shareholders. Currently, directors can be elected if they receive a plurality of votes. Even if 99% of votes are withheld, a candidates can be elected with 1% of yes votes. According to Jennifer Waters at MarketWatch.com, in 2007, Home Depot directors must secure a majority of votes to be elected. If more votes are withheld than secured, the candidate will not be elected. This proposal to change they way directors are elected won 56% of shareholder votes during 2006 balloting. More transparency at the top is a good thing.

Just in time for the beginning of college football season, Home Depot signed a three year deal to continue its sponsorship of College GameDay on ESPN. The Home Depot logo and color scheme will figure prominently on the main desk of the set. Home Depot will also sponsor shorter programs on ESPN's Friday Sports Center throughout the season.