Should Home Depot spend money on better service?

Short answer: Absolutely the right move for Home Depot. The current management already undid some of the damage made by Bob Nardelli when he was the CEO, and there is still work to be done. The best parallel from a strategic standpoint is Best Buy, which rose to the top of its market by stressing customer service while its chief rival eliminated its best sales associates in a cost-cutting move. (And we all know how that worked out for Circuit City.) In fact, the “Geek Squad” premise would be a good concept for Home Depot to follow, giving its stores the halo effect of great service while also driving a free-standing revenue stream.

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