dise resulting from product line reviews and increased sales of imported products, other merchandising initiatives and sales mix shifts to higher gross margin product categories and assortments. Net Earning as a percent of sales were 6.0% for fiscal 1999 compared to 5.3% for fiscal 1998, reflecting a higher gross profit rate partially offset by operating expenses. Operating expenses as a percent of sales were 19.8% for fiscal 1999 compared to 19.7% for fiscal 1998. Selling and store operating expenses as a percent of sales increased to 17.8% in fiscal 1999 from 17.7% in fiscal 1998. The increased was due to higher store selling payroll expenses resulting from market wage pressures and an increase in employee longevity, as well as to continued investment in new customer initiative.Company StrategyHome Depot key to its strategy is listening to its associates. Claims of keeping communications open at all levels, treating associates with dignity, welcoming creative ideas, and rewarding entrepreneurial thinking by promoting from within. By building a loyal workforce and creating good will within the community both through its employees and through its community programs, Home Depot has made itself a household name. Continuing to expand its customer base by opening stores in new locations while encouraging a team attitude among its associates has allowed Home Depot to give its entire stores the same down-home feeling offering advice, a warm welcome and superior service. Most warehouse-type stores in the past had concentrated on price and selection, but had neglected customer service. By pitting service first and making associates a part of the big picture, Home Depot quickly stepped to the front ranks of its market segment. Size has not diminished the company’s commitment to service and community, making the chain welcomed in most areas.One of the factors that has helped to shape the successful marketing strategy of Home Depot h...
