Home Depot expands into distribution centers to support home professionals

Home Depot is expanding its distribution centers to better serve professionals in the home improvement industry. With the opening of four new facilities in Detroit, Los Angeles, San Antonio, and Toronto, Home Depot aims to cater to the needs of remodelers, contractors, and other home professionals by providing a wide variety of products in bulk quantities that can be delivered directly to job sites.

These new distribution centers, each approximately 500,000 square feet in size, are part of Home Depot’s strategy to attract professionals who handle larger and more extensive projects. The company has already opened 14 similar distribution hubs in major metropolitan areas and draws roughly half of its total sales from professionals.

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While the company’s sales declined by 3% last fiscal year due to the pandemic, Home Depot expects total sales to grow about 1% this fiscal year. Winning more business from professionals is crucial for Home Depot’s growth, especially as the company navigates a higher interest rate environment that has slowed housing turnover and chilled demand for home improvement projects.

To support professionals handling complex and pricey projects, Home Depot is piloting a program that offers trade credit, expanding its dedicated sales force, and adding digital tools and personalized features to enhance the customer experience. CEO Ted Decker highlights expanding the pro business as one of the company’s key priorities for the year, along with building new stores and creating a more seamless experience for customers.

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By providing professionals with a one-stop shop for all their project needs, Home Depot aims to solidify its position as a trusted partner in the home improvement industry. The company’s focus on serving professionals highlights its commitment to meeting the evolving needs of its diverse customer base.

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