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PayPal extending to 2,000 HD stores

BY HBSDealer Staff

The PayPal pilot at Home Depot stores is rapidly expanding, going from 51 test locations in the San Francisco Bay Area this week to all 2,000 Home Depot stores by the end of March, according to Bloomberg News.

PayPal director of communications Anuj Nayar told Bloomberg the digital commerce company will extend the trial to 20 additional retail partners by the end of 2012.

On Jan. 18, eBay CEO John Donahoe, parent company of PayPal, announced plans to widen the pilot from five to 51 stores by end of the month. PayPal has also begun testing its online payment service — which requires only a mobile phone number and a PIN — with Office Depot. 

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Lowe’s to get $300,000 in public funds for call center

BY HBSDealer Staff

The Bernalillo County Commission approved $150,000 in funds for Lowe’s to open its new call center in Albuquerque, according to an article in the New Mexico Business Weekly.

The funds have been set aside to renovate a 63,000-sq.-ft. building Lowe’s will occupy, a former AOL call center and later a Convergys call center. The money comes from the state’s Local Economic Development Act and is in addition to $150,000 from the state Economic Development Department.

Last December, the Bernalillo County Commission also approved an industrial revenue bond issue of up to $16 million, which will allow Lowe’s to abate certain taxes. The term of the IRB is eight years, so if Lowe’s does not complete the work or it closes before the end of that time, the firm would have to pay back any abated taxes.

At the time, Lowe’s promised to bring hundreds of customer support jobs to Albuquerque, reaching 600 by the end of 2013. The salaries will range from $12 to $15 an hour for starting agents, and more for managers or those with more experience. Health benefits are available. 

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Remodeling index hits five-year high

BY Brae Canlen

The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) reported a 46.6% jump in activity in the fourth quarter of 2011, compared with the third quarter, marking its highest level in five years. 

In the fourth quarter, the RMI component measuring current market conditions rose to 48.4 from 43.0 in the previous quarter. Future indicators of remodeling business were also positive, increasing to 44.8 from 40.4 in the third quarter.

An RMI below 50 indicates that more remodelers reported market activity is lower (compared with the prior quarter) than reported it is higher.

"As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high," said NAHB remodelers chairman Bob Peterson, a remodeler from Ft. Collins, Colo. "2011 ended on a strong note for the remodeling industry." 

All four regions of the country benefited from the gains between the third and fourth quarters of 2011. The RMI reported higher market activity in two important categories: major additions at 52.3 (from 45.2) and minor additions at 50.1 (from 45.7).

Two of the indices reported a level over 50: calls for bids at 50.7 (from 45.4) and appointments for proposals at 50.1 (from 43.3), while work committed for the next three months only rose to 31.5 (from 29.9).

"With several key components above 50, the latest RMI provides reason for guarded optimism going forward," said NAHB chief economist David Crowe. "The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue throughout 2012."

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