Home Depot merchandising policy has vendors concerned.
From Hardlines, Inc. – www.hardlines.ca
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Home Depot merchandising reorg causes vendor concern
TORONTO — The recent promotion of Home Depot Canada’s Joe Allen to the role of director, vendor services, puts him in a role that has a lot of vendors — and more importantly, their in-store service providers — really, really worried.
Hardlines has obtained a copy of a confidential letter that went out to the vendor community last month from Home Depot Canada’s vice-president merchandising, Gino DiGioacchino. The letter outlines a plan for a new structure within the merchandising division, whereby Home Depot will bring its vendor-managed in-store merchandising services in-house.
Under Allen, Home Depot will form a “key leadership team … beginning the development of a new vendor services team”, says the letter. Home Depot is reportedly going to add up to 1,400 people to the merchandising division, creating a team that will supplant all the existing store service teams — a whole segment of the industry in Canada.
Those in-store merchandising services have historically been the role of the vendors themselves, usually through merchandising service, or detailing, companies. These companies reflect the reinvention of sales agencies to ensure that the products on the shelf remain in stock and properly merchandised. Some of these companies have up to 200 people on staff across the country, all going into stores on a regular basis.
Some vendors have expressed their concern over the efficacy of the program in America. However, DiGioacchino stresses the weight that was given to the decision to go ahead with it here after studying carefully how it performed in the U.S. “This was not an easy decision for me to make,” he says. “This was four years in the making.”
He adds that the vendors themselves play a key role in the success of Home Depot Canada. “Without our vendor partners, we cannot build our business. They are critical to our success.”
Above all, this could impact many many people currently in that role with these outside providers. In spite of Home Depots thoughts, these outside firms have done a better job of merchandising and maintaining instocks, than Home depot will achieve with their own team. Just my 2 cents….
While this is not atypical of other industries, it is a considerable change, which always puts us into question mode. I agree with question above — what happens to the people in those roles currently. In what continues to be a tough economy, every job counts…
Above all, this could impact many many people currently in that role with these outside providers. In spite of Home Depots thoughts, these outside firms have done a better job of merchandising and maintaining instocks, than Home depot will achieve with their own team. Just my 2 cents….