Now don't get me wrong, I am not a perpetual Home Depot basher. I love tools -- and they sell tools -- ergo, I love Home Depot. Okay, maybe 'love' is too strong a word, but I have had some positive things to say about the company. Back in November, I noted that my recent experiences have been better and commended an associate who was both extremely knowledgeable and helpful. But a more recent experience has me wondering if Mr. Blake has underlying quality issues that need to be addressed.
A couple of weeks ago I finally worked up the nerve (to tell my wife) that I wanted to buy the 26 gallon Husky air compressor that I had been eying for some time. As usual, she gave me the green light so I headed down to my local Home Depot at first light on a Saturday. I loaded the mammoth box onto a flat bed cart and headed toward the checkout, watching the envious stares of those who weren't also getting a new toy. Unfortunately, that was the last of my good feelings.
Once home, I realized the box had previously been opened and some of the air tools inside had clearly been unwrapped. Teflon tape was stuck to threads and plastic bags were torn or missing. I was annoyed that my $300 purchase was "slightly used" but I was not willing to go through the hassle of trying to reload the giant box. Until, that is, I found out the compressor was defective. So I loaded everything up and headed back to the store, where I found the clerks to be pleasant and even helpful with getting me an exchange -- kudos to them.
Driving home, I found my annoyance fading as I focused on the fact that this box hadn't been opened. I would be this compressor's "first" . . . but fate was not smiling on me as this air compressor also proved defective, with a leak in the motor.
Rage doesn't even begin to describe the feelings that pulsed through me as I had to go through the laborious task of cramming everything back into the box and lugging the entire thing down to the store for a second time. Instead of an exchange, I opted for a refund because competitors like Lowe's Companies, Inc. (NYSE:LOW) and Sears Holdings (NASDAQ:SHLD) both offer comparable products.
Now I suppose that this could just be a situation of incredibly bad luck where I ended up with the only two defective compressors produced under the Husky name. However, when I later recounted my sad tale to an actual Home Depot associate I was shocked by the response. I can only describe it as "a lack of surprise," as the response was something like -- "yeah, a similar situation happened with a relative of mine."
This leaves me wondering, was this just an isolated case or does Home Depot have some Husky quality control issues to deal with? If there are widespread problems, Mr. Blake may trouble winning back customers and the stock may have trouble keeping its recently found momentum.
While my personal decision about where to shop (or not) is clear, my question about the stock requires more input. You tell me, is my experience isolated or have others had similar experience that may indicate there are issues lurking below the surface with respect to the stock? Add your comments below!
Nick Perry is an analyst with Schaeffer's Investment Research.
Driving home, I found my annoyance fading as I focused on the fact that this box hadn't been opened. I would be this compressor's "first" . . . but fate was not smiling on me as this air compressor also proved defective, with a leak in the motor.
Rage doesn't even begin to describe the feelings that pulsed through me as I had to go through the laborious task of cramming everything back into the box and lugging the entire thing down to the store for a second time. Instead of an exchange, I opted for a refund because competitors like Lowe's Companies, Inc. (NYSE:LOW) and Sears Holdings (NASDAQ:SHLD) both offer comparable products.
Now I suppose that this could just be a situation of incredibly bad luck where I ended up with the only two defective compressors produced under the Husky name. However, when I later recounted my sad tale to an actual Home Depot associate I was shocked by the response. I can only describe it as "a lack of surprise," as the response was something like -- "yeah, a similar situation happened with a relative of mine."
This leaves me wondering, was this just an isolated case or does Home Depot have some Husky quality control issues to deal with? If there are widespread problems, Mr. Blake may trouble winning back customers and the stock may have trouble keeping its recently found momentum.
While my personal decision about where to shop (or not) is clear, my question about the stock requires more input. You tell me, is my experience isolated or have others had similar experience that may indicate there are issues lurking below the surface with respect to the stock? Add your comments below!
Nick Perry is an analyst with Schaeffer's Investment Research.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
2-08-2007 @ 3:41PM
Kevin said...
This company has been cutting costs pretty much left and right for the last 2 or 3 years as to bring thier prices down to compete with Lowes who has been moving into HD territory for some time now.
What Home depot needs... Is probably some remodeling, uplifting of workers (through raises and idea sessions/building) into solutions for increasing sales and some good merchandising efforts.. All things that can bring a reasonably good company back to the excellent company it used to be... I think they are still a good company I just think they got comftorable then panicky when competitors moved in..
2-12-2007 @ 7:02PM
FoolMeOnce said...
I used to thoroughly enjoy shopping at Home Depot. However, it's become more and more difficult to associate the term 'customer service' with this company.
When one has an occasion to talk to a HD zone manager & they tell you even they have problems finding help when they visit the stores, you know it's bad.
Just look around at all the postings online about problems HD customers have had in getting a positive response in resolving problems, and it's painfully obvious huge changes are needed to make this company more responsive.
The term customer service seems to be only 'words' to personnel at the corporate offices. If they can't be retrained to respect their customers, wholesale changes should be considered.
2-21-2007 @ 1:13PM
Clyde Edmonds said...
Just adding my 2 cents worth on the deplorable service provided by HD's website online ordering system. Not only do they not fill orders correctly but they have the audacity to state to the customer that is their policy not to correct orders but to return the origional order. I have since ordered a stop payment to my credit card company.
4-01-2007 @ 11:16AM
Paul J. Ste. Marie said...
My experience has been that a lot of the larger stores will repackage returns and put them on the shelf, without regard for whether or not the product was defective. I don't have a problem with reselling _nondefective_ returns--that's the flip side of a customer-friendly return policy. However, the stores really need to sort out the defective returns from the ones where the product didn't meet the customer's needs, etc.