Home Depot Warns Vendors to Avoid Net

Home Depot Inc. has warned its suppliers to think twice before competing with it online.

A company spokesman said Wednesday that it has sent letters, starting in May, to all of its suppliers, including toolmaker Black & Decker and Scotts Co. lawn and garden products company, containing a message about online sales.

“We recognize that a vendor has the right to sell through whatever distribution channels it desires,” the letter reads in part. “However, we, too, have the right to be selective in regard to vendors we select, and we trust that you can understand that a company may be hesitant to do business with its competitors.”

Home Depot spokesman Jerry Shields said the company did not intend for the letter to sound coercive. “This is obviously a business letter. This is about business,” he said.

Home Depot does not yet sell its wares online, but Shields said it hopes to start by early 2000.