<p>The Home Depot can sustain unlimited growth without significantly affecting same-store sales and may one day expand into Europe and Asia, chief executive Bob Nardelli said Tuesday.</p><p>In an exclusive interview with The Associated Press, Nardelli said the Atlanta-based company, which has increased its number of stores by 60 percent in his three years there, could make strategic acquisitions in Europe and open stores in Asia, though there is nothing planned at the moment.</p><p>When people talk about, Where is their growth going to come from? Arent you really saturated, I take great exception to that because we see tremendous growth, Nardelli said.</p><p>Some analysts and large investors worry that as the nations largest home improvement store chain gets bigger, new stores will take market share from other stores in the same area _ a process called cannibalization.</p><p>The real question is, What can the market hold and at what level does it become unaffordable to build these stores? said Nancy Aversa, an analyst with Victory Capital Management in Cleveland.</p><p>Nardelli dismisses the concerns, saying Home Depot only has 10 to 12 percent of the share of the $500 billion global home improvement market. That, he says, gives it a lot of room to move up.</p><p>If we look to Europe, obviously you would look at an acquisition, Nardelli said. Europe is much like the U.S. was a decade ago. Its very fragmented, there are a lot of players there.</p><p>Home Depot currently owns 1,643 stores in the United States, Canada and Mexico.</p><p>Weve obviously made no disclosure, no announcements, but as you look at becoming more global ... you look to the east and you look to the west, Nardelli said. If you go to the east, you would go to Europe. If you go west to Asia, Asia would probably be a greenfield, and if you went to Asia you would probably go to China.</p><p>Nardelli would not say when Home Depot might move into other countries, though he said the company has already opened two offices in China since he joined it to source proprietary products that gives us a unique position in the marketplace.</p><p>For now, he said Home Depot is focused on its domestic business, improving customer service, remodeling stores and selling new merchandise like John Deere tractors. In the last several months, the company has pumped millions of dollars into renovating its stores to give them a softer look, a policy that rival Lowes has found beneficial. Hundreds of self-checkout terminals have been added to make the purchase process swifter.</p><p>I think if you talk about Home Depot growth, Ive been in business over 35 years and Ive never been associated with a company whose growth is controlled more by us than the market, Nardelli said.</p><p>When Nardelli came to Home Depot from General Electric in 2000, he was chided by some for lacking the retail experience necessary to run the company. But Home Depot co-founder Bernie Marcus, who no longer works for the company, said he believes Nardelli was the right choice. Atlanta Falcons owner Arthur Blank was the other Home Depot co-founder.</p><p>The proof, Marcus said, is in the numbers. Home Depot on Tuesday posted a 22 percent jump in third-quarter profits. Marcus, who as of last year owned 59 million shares, is Home Depots single largest shareholder.</p><p>When we ran the company, the competition wasnt as great, Marcus said in a telephone interview from his home in Boca Raton, Fla. He (Nardelli) is doing the right job at the right time. The name of the game is sales.</p><p>Marcus said he often discusses the companys strategy with Nardelli. Some of Marcus ideas are incorporated, some arent, he said. But, Marcus said, times are different and call for different priorities. He said he believes the transformation of the company under Nardelli will be good in the long run.</p><p>Nothing is a big surprise here, Marcus said.</p><p>___</p><p>On the Net:</p><p>HASH(0x2864820)</p>
