Early Life
Eric Smidt was born in Los Angeles, California, in 1960. He co-founded Harbor Freight Tools with his father, Allan Smidt, in 1977. At the age of 9, Smidt was sent to an orphanage and later lived with an aunt. He returned home later and graduated from Grant High School in Van Nuys.
Rise to Success
Smidt began his career in the tool retail industry at a young age, transforming his father's small phone sales business into a mail-order tool company. In 1980, Harbor Freight opened its first retail store in Lexington, Kentucky. Smidt became president of the company in 1985 at age 25 and CEO in 1999, eventually becoming the sole owner. Under his leadership, Harbor Freight Tools expanded to over 1,600 stores across 48 states.
Key Business Strategies
A key strategy has been direct sourcing, bypassing middlemen to offer tools at lower prices. The company has also focused on expanding its product range and offering a wide variety of tools and accessories. Harbor Freight Tools has also implemented a company-wide reinvigoration plan which led to new products and lower prices in response to the 2008 global recession. Rapid expansion and a focus on providing value to customers have also been instrumental.
Philanthropy
Eric Smidt, through The Smidt Foundation, supports various charitable causes. This includes supporting skilled trades education through Harbor Freight Tools for Schools. In 2018, Smidt and his wife donated $50 million to Cedars-Sinai Medical Center to establish the Smidt Heart Institute. The Smidt Foundation also supports organizations focusing on healthcare, education, and community needs.