Hardware Chain Sues Home Depot, Alleges Exclusive Dealing

By Hallie Busta

Orchard Supply Hardware is suing The Home Depot on allegations that the big box retailer cut exclusive deals with some power-tool makers in an attempt to compete with online retailer Amazon—a move that the publicly traded 89-location California chain says will cost them $2 million. Orchard claims in its lawsuit that manufacturers Makita and Milwaukee stopped supplying power tools in June, "shortly after Home Depot had publicly announced in early June 2012 that it planned to lock up the supply of key hardware products in order to counter the competitive threat posed by Amazone and other online retailers." Whether the court can prove more than correlation between the stopped shipments and The Home Depot's announcement, Fast Company reports, the allegations raise questions as to the effect competitive pricing among online retailers and big-boxes is having on business for independent building material retailers. Read the full story.

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