Auto Service World
News   April 12, 2006   by Auto Service World

Home Depot to test auto parts waters


Home Depot Inc. will begin selling automotive supplies in a 10 store Florida pilot project, according to a California based analyst.
Setting aside some 500 square feet for their new product line of, motor oils and fuel additives, Home Depot is looking to step lightly at first, but the implications of the move could be much larger, suggested Thomas Weisel Partners LLC analyst Matt Nemer.
According to the report, the Atlanta-based retailer could be selling the auto supplies for as much as 22 percent lower than current popular retailers, such as AutoZone and Pep Boys.
While Nemer didn’t expect a large shift in sales initially, he did note that if number two retailer Lowe’s Cos. were to jump into the mix, it could cause problems for auto parts retailers.
“We are somewhat concerned for auto-parts retailers given that Home Depot already targets the appropriate customer base, the male do-it-yourselfer,” San Francisco-based Nemer wrote.


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