Home Expo, the interior décor arm of The Home Depot, is closing in New Rochelle, leaving the city with a big-box footprint.
“We”™re obviously disappointed,” said New Rochelle Mayor Noam Bramson of the news that the 103,131-square-foot store at 8 Joyce Road will close. “The closure of Home Expo will cost the city hundreds of thousands of dollars in sales taxes, but we recognize that this is evidence of a broad national economic downturn that has impacted the entire Expo chain, and we”™re also confident that the site is well-positioned and sized to attract new retailers.”
Jen King, senior manager of public relations for the northern division of The Home Depot, said the announcement to close Home Expo stores came on Jan. 26.
“It was a difficult decision, but right and necessary for the business,” King said.
Closeout sales began at the end of last month, and King said the store will stay open for at least two months as remaining merchandise is sold.
King said all 34 Home Expo stores nationwide are scheduled to close. The average store employs some 150 people.
“We think all the Expos should be closed by end of April,” King said.
In total, the company will lay off 5,000 Home Expo employees as well as eliminate 2,000 streamlining support functions.
According to a statement from The Home Depot, the Expo business “has not performed well financially and is not expected to anytime soon. Even during the recent housing boom, it was not a strong business. It has weakened significantly as the demand for big ticket design and décor projects has declined in the current economic environment. Continuing this business would divert focus and resources from the company”™s core ”˜orange box”™ stores.”
There are no plans to close any Home Depot stores, King said.
According to the Home Depot statement, the company anticipates continued weakness in sales because of the economy, but will continue to invest in customer service in its core Home Depot stores. In addition, it plans to reduce capital expenditures to some $1 billion in fiscal 2009 and will open 12 stores.
