• by Sarah Mahoney  @mahoney_sarah, June 10, 2009

While the U.S. housing market remains in a slump, the Home Depot believes the worst is over, and says its earnings in the year ahead will be slightly better than previous forecasts. And in a presentation to investors, the Atlanta-based retailer offered a peek at sweeping changes intended to help the No. 1 home-improvement build market share in the coming months.

In a word, it says its new mantra is simplification, and that -- for a company that built its rep on making home-improvements easy -- it has been hampered by an overly complicated corporate structure.

Companywide, says Frank Blake, chairman and CEO, the Home Depot is looking to "take care of associates, put customers first and simplify the business." In fact, he says, the renewed focus on customer service "represents the first time in many years that we've set out a simple framework for customer satisfaction, and then trained all our associates."

Other changes are enough to make overworked Americans swoon with envy: In an attempt to free store managers from endless demands from the corporate office, executives eliminated over 200 weekly reports and email. "Store managers now get a one-page scorecard each week," says Marvin Ellison, EVP of the company's U.S. stores division.

Even better is a companywide "communications blackout" on Tuesdays and Sundays, when absolutely no emails can be sent to stores. "Instead, managers are now given a playbook of 10 pages or less each week, freeing them to do what's really important -- take care of their customers," he says.

That sense of simplicity is also reshaping marketing, as the chain looks for new ways to convince consumers that shopping at Home Depot is easier than other options. There is a greater emphasis on products that simplify chores, says Craig Menear, EVP of merchandising -- such as lithium-battery powered tools and paints that also include primer.

"We've reduced the number of SKUs, and increased in-store marketing. And we're striving to eliminate rebates, coupons, sweepstakes, and gift cards. We don't have to want consumers to have to do something else to save money when they leave the store, like fill in a rebate card," he says.

The chain is also focusing more on Hispanic marketing, including recruiting more Hispanic associates.

And while national brands continue to be very important to the store's strategy, "and we still strive to stock the No. 1 and No. 2 brand in every category, at a bare minimum," he says the chain has also increased its emphasis on proprietary and exclusive brands.

Several months ago, the Home Depot quietly ditched its "You can do it. We can help." advertising tagline for "More saving. More doing," a much more direct appeal to cash-strapped homeowners.