ServiceMaster and Home Depot are two publicly traded companies that must always grow to thrive. These massive firms joined forces at outset of 2002 with hopes of identifying a way each could help the other drive revenue. Apparently, that plan failed.
The companies announced the end of their test program that featured kiosks touting ServiceMaster’s lawn care, landscape, pest control and other home-oriented services in 28 Home Depot stores in three cities: Orlando, Memphis and Sacramento.
This news came at the same time that ServiceMaster announced its new deal with Internet portal Yahoo!, but no one will comment on how this new strategy influenced the Home Depot arrangement.
Without divulging specifics, the companies said the program yielded positive results but still failed to meet expectations.
"We have learned a tremendous amount about our potential and existing customers from exploring this retail channel," related Ernest Mrozek, ServiceMaster’s president and chief operating officer. "We believe that select retail channels remain a strategic fit for ServiceMaster, and we will continue to explore other in-store marketing opportunities with a variety of partners in the future."
Meanwhile, Home Depot also noted that it still sees home services as an opportunity for growth, and it will continue to seek strategic partners in that area. The services offered in the project "are still viable candidates for Home Depot to look at," possibly with other providers, noted Home Depot spokesman Don Harrison. Home Depot stores already offer a range of home services through its At-Home Services brand, such as installing cabinets, flooring and windows.
"We continue to believe that home services represents a great opportunity," said Frank Blake, Executive Vice President, Business Development and Corporate Operations for Home Depot. "That's why pilot programs are so effective. They allow you to explore new ideas. If a program doesn't meet expectations, the partners still benefit from the experience, which can be applied to the next similar venture. In the area of home services, Home Depot will continue to develop strategic partnership opportunities."
ServiceMaster’s stock currently trades at about $11.50 a share, compared with its 52-week high point of $15.50 a share, which it enjoyed in May.