Home Depot Names Philips Sole Light Bulb Supplier

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Jun 03, 2002
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Royal Philips Electronics and Home Depot have formed an exclusive partnership where Philips Lighting will be the only brand name light bulbs that Home Depot stores sell, reports HomeChannelNews.com. The arrangement includes incandescent, halogen, florescent, specialty and high-intensity discharge products. Home Depot will continue to offer its private-label bulbs, sold under the name Commercial Electric.

“All shelf space now occupied by six other brands [including Philips] will be converted to Philips,” explains Steve Goldmacher, the Philips’ director of corporate communications.

Philips will begin resetting Home Depot’s 1,400 stores this summer, Mr. Goldmacher says. The lighting company has also committed to training store personnel. Also, it will “[assist] the retailer as it considers international opportunities,” according to a prepared statement.

Moderator Comment: Do retailers that do not sign exclusive
supplier arrangements have a competitive advantage over those that do?

Brand loyalty (however slight) in most product categories
requires more than one supplier. Beyond that, consumers want to be able to choose
for themselves. Single brand relationships send a message that is contrary to
the multiple options that U.S. consumers’ demand. [George
Anderson – Moderator
]

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