How Home Depot Was Started : Arthur Blank and Bernie Marcus’ Start Up Story
Whenever you visit the Home Depot, do you ever wonder how it started? How did it rise to become a one-stop shop that has everything you could ever need for your home?
It was in 1978 when Arthur Blank and Bernie Marcus established The Home Depot (HD) in Atlanta, Georgia with the help of Ken Langone and Pat Farrah. The company started with a vision of providing a store for do-it-yourself (DIY) home improvements. There were other home improvement giants in the market during that time, but Home Depot’s founders believed in their goal of becoming the bestand this was what fueled their vision and mission. They wanted to be different than their competitor and also wanted to be the biggest among them. Arthur Blank once said: ‘Bernie and I founded The Home Depot with a special vision – to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society.’
When they opened their first few stores, each being about 60,000 square feet, they made a tremendous impact overnight that belittled their competitors. They filled their warehouses with thousands of products and even stacked piles of empty cartons to make it appear that they have thousands of products that clients can choose from. Even at the start of their business venture, Home Depot was able to revolutionize the DIY market. They were creating waves in a matter of days.
In 1981, Home Depot listed their company in the New York Stock Exchange (NYSE), and by 1986, the company was able to report sales amounting to about $1 billion. In 1997, Home Depot’s sales rose to $20 billion that made the company the fastest growing home improvement retailer. This success is attributed to the strategic pillars that the founders strictly follow: high service, low price, and market saturation.
Since their founding, the company worked on providing the best service for their customers. They made sure that all of their associates undergo in-depth product training to better assist customers in their projects. You can expect each associate would give you the proper information like how to change an angle valve or how to operate a power tool. Another good thing is that Home Depot has their own Customer Bill of Rights that they strictly adhere to. Customers feel that aside from the quality products that they buy, they can also get a good deal by getting the proper information about the products.