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Home Depot is opening four new distribution centres in North America, in a bid to appeal to construction and remodelling professionals.
Why it matters: Amid an uncertain economic landscape, Home Depot is betting on the professional home-improvement segment to drive growth.
Driving the news: Home Depot’s four new centers will add to its existing network of 14 warehouses targeting professionals.
- Slated for opening in the first half of 2024, Detroit, southern Los Angeles, San Antonio, and Toronto will each get a new center.
- The facilities will stock large, bulky merchandise such as lumber, insulation, and roofing shingles catering specifically to the pros.
Between the lines: In addition to the new facilities, Home Depot is also building out other pro-targeted offerings, such as:
- Localized products specially tailored for each priority market.
- Digital tools and personalized experiences to better manage complex pro orders.
- Trade credit, which is currently in pilot with a small number of pro customers; and
- Tiered pro pricing.
By the numbers: Home Depot estimated the market for bulky, big-ticket orders going to professionals to be worth about $200 billion.
- Currently, the professional market accounts for about 48% of Home Depot’s overall sales.
Big picture: Home Depot has been grappling with falling sales as high interest rates and low housing turnover have led to lower demand for home-improvement projects. It’s hoping the pro-market will help navigate these challenges.
