Home Depot’s Gas Marts Get Mixed Reviews

Atlanta, The Home Depot plans to test gas marts, convenience stores with gasoline stations, at four Home Depot stores in Nashville, Tenn., starting in December. Some analysts, however, are questioning whether the gas marts will work at the chain. Keith Davis, an analyst with investment firm Farr Miller Washington, said the test will not hurt Home Depot’s profits, but trying the gas marts on a larger scale may not be a good idea. He said the concept is “straying a little bit too far from what the company has done historically and might be a little aggressive in terms of trying to diversify.”

Home Depot spokeswoman Paula Smith said, “We think customers will respond well to having a safe, clean, high-quality convenience store option close to where they are already shopping.”

Geoff Wissman, a VP at consultants Retail Forward, believes adding gas marts to The Home Depot do not make as much sense as adding them to grocery stores and warehouse clubs. He said, “The potential dilemma [with Home Depot] is that you really aren’t buying home improvement products quite as frequently.” Wissman also said since there are more conveniently located options, consumers will likely choose them over Home Depot locations.