Sometimes in the business world success is not about inventing something brand new to great success, sometimes, in order to succeed you just have to take something that is already in existence and perfect it, or at the very least make consumers believe that you’ve perfected it, after that, you can usually start watching the money roll in.
Trading in binary options is not so different from that in a certain sense – in order to make profits you simply need to read the lay of the land and see which investment can allow you to harvest the most profits, pour your money in and then watch it grow.
And if you aim to go big, you really can’t go a lot bigger than Home Depot.
The mega-store chain that specializes in home improvement products believes in big, and it’s reflected not only in the size of its stores (which average almost 10,000 m² in the US) but in the way it does business.
The company was founded in 1978, with the simple notion of taking the idea of home improvement stores and going “mega”, with the assumption that buyers will flock to such locations if they have or believe they can find all their needs in a single location.
Two initial locations near Atlanta, Georgia quickly grew to become 4 locations, and kept on expanding.
The Home Depot also brought some changes to the way they conducted customer service in their stores, store employees are referred to as “associates” and it was not unusual to find expertly trained professionals working there, the belief was that if consumers got good professional advice about whatever project or home need they had they would continue returning to the store with the knowledge that they can get help in it.
The system seemed to work quite well initially, and the company began being traded publicly in 1981 (3 years after its establishment!) initially on the NASDAQ, and moving to the NYSE 3 years later.
The mid-80’s however proved to be a rather difficult time for the company, as the cost of opening new locations, combined with a few ill-advised purchases brought about increasing debt, which was escaped only by laying off employees and shuttering a few unprofitable locations.
By the late 80’s Home Depot recovered from its rough patch and resumed growth, with 1989 bringing 2 milestones – the 100 store, and the surpassing of main rival “Lowes” in sales.
To this day, Home Depot continues to grow and expand, currently having over 2000 stores in an ever growing number of countries, while employing over 300,000 associates, further proof of the company’s growth and market status can be seen in its 1999 inclusion in the Dow Jones industrial average.
If you are looking into the home improvement giant as a possible binary options investment there are a couple of things you’d do best to keep an eye open for: continued expansion might not be as critical as one would think, the current market for similar stores seems to be quite saturated, so the main focus should probably be on efficiency on the global level as well as actions taken to keep the company on a profitable path, secondly, given that the Home Depot can be classified in the category of luxury purchases for the most part, you should probably keep track of general consumer indicators – average salaries and employment being key, the more people are employed while making more money would indicate more purchases they’ll be able to make, which is always good for retailers.
We would be pushing it if we said that an investment in the Home Depot can make your profits grow to the size of one of their stores, but with a smart binary options purchase on it you could easily have more to spend when you next visit such a location.