Home Depot Gets A Fresh Coat Of Less-Glossy Paint

For six years, it was a perk that Home Depots chief executive, Robert L. Nardelli, could not do without: a catered lunch for his top deputies, served daily on the 22nd floor of the companys headquarters in Atlanta.

In weeks, Frank Blake, top, has moved to change the culture that his predecessor, Robert L. Nardelli, bottom, set up.

But several days into his tenure as Mr. Nardellis successor, Frank Blake quietly abolished the free meal, telling senior executives to take the elevator down to the first floor and, on their own dime, eat with the companys rank and file in the cafeteria, according to an employee.

It is the kind of symbolic gesture that has come to define Mr. Blakes short time as head of the nations largest home improvement retailer, as he tries to distance himself from the tumultuous reign of Mr. Nardelli, who was ousted several weeks ago over his sky-high pay package and authoritarian style.

Mr. Blakes message, however, could not be any less subtle: the era of the imperial chief executive at Home Depot is over.

To underscore the point, Mr. Blake has distributed an old company icon, called the Inverted Pyramid, that lays out the retailers hierarchy, with customers and employees above the chief executive on the bottom. The image, which fell out of favor under Mr. Nardelli, has begun popping up in store break rooms and office cubicles across the company.

Its not about me, Mr. Blake has told investors and analysts in introductory meetings, according to people who have attended the sessions.

But for all his humility, Mr. Blake, 57, is making his presence known in a hurry. In under 40 days, he has sharply cut his own pay, put an activist investor on the board, nudged out four former General Electric executives recruited by Mr. Nardelli and has left hints that he could eventually sell off the $12 billion wholesale supply business that he helped build, according to people briefed on the matter.

The common theme? Returning Home Depot to its humble retail roots and erasing the widespread perception that it has lost its focus on selling hammers, light bulbs and paint brushes.

These are unexpected developments from a chief executive many analysts saw as Nardelli Lite. After all, Mr. Blake followed Mr. Nardelli from General Electric to Home Depot. But the similarities end there. Mr. Nardelli, a bullish, impeccably dressed former football player, spent nearly his entire career climbing the corporate ladder at G.E.

Mr. Blake, by contrast, has the skill of a diplomat, having served as deputy secretary for the United States Department of Energy and general counsel for the Environmental Protection Agency. A soft-spoken, slight man who carries a beat-up leather briefcase, he appears to be emerging from Mr. Nardellis shadow, as a disciple who rejects the style of his former boss.

There is a lot riding on Mr. Blakes ability to correct Home Depots course. The company booked revenue of $90 billion last year, but sales at stores open at least a year have fallen well behind that of its rival, Lowes, as Mr. Nardelli cut employee hours and alienated the older, experienced workers who gave the chain its reputation for helpful, expert staff members.

And analysts worry that its fast-growing supply business, focused on professional builders, rather than do-it-yourself shoppers, has siphoned resources and attention from its far bigger retail division. Both issues have weighed on the stock price, which has remained stagnant for the last four years.

Mr. Blake has discussed with his colleagues whether he should consider selling off the wholesale supply business, Mr. Nardellis pet project, according to a person outside the company briefed on the matter. And he subtly hinted at that prospect in meetings with some investors when he asked them their opinion of the supply business and its value, according to people familiar with the sessions, who spoke on condition of anonymity because they are not authorized to talk publicly.

Mr. Blake declined to be interviewed. But people who have met with him since he became chief executive, or have been briefed on these meetings, said he planned to improve the retail business by single-mindedly focusing on employee morale and customer service in the chains 2,000 stores.

No wonder, perhaps, that Mr. Blake called both of Home Depots founders, Arthur Blank and Bernard Marcus, during his first day on the job, and has asked each to be available as informal advisers, according to people briefed on the matter. Both Mr. Blank and Mr. Marcus, revered within the company, were obsessed with the store experience.

Andrew Ross Sorkin contributed reporting.

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