Readers respond to SRS-HD deal
The $18.25 billion acquisition of SRS Distribution by The Home Depot brings more than 700 pro-focused locations to the world’s largest home improvement retailer.
HBSDealer asked readers: Were you surprised by the acquisition? Will it affect your business’s go-to market-strategy, from a competitive or a supplier standpoint?
Here are the findings after nearly 300 responses.
While a plurality (40 percent) of readers describe themselves as "surprised and affected" by the deal, combining answers reveals that a strong majority (70 percent) were surprised and a majority (60 percent) expect to be affected. [Add your vote to the survey here.]
And perhaps with good reason.
Following the March 28 announcement of the deal, the world’s largest home improvement retailer said SRS complements its capabilities and will enable Home Depot to “better serve complex project purchase occasions with the renovator/remodeler, while also establishing itself as a leading specialty trade distributor across multiple verticals.”
The Home Depot also noted that its "total addressable market" is approximately $1 trillion, an increase of approximately $50 billion.
The massive deal follows shortly on the heels of another big pro-customer-related move. The Home Depot said it plans to open four new distribution centers, expanding its “pro ecosystem” to Detroit, southern Los Angeles, San Antonio and Toronto in 2024.
“Pros need a partner with the right product, depth of product, fulfillment capabilities, sales support and management tools to help them get their jobs done,” said Chip Devine, senior vice president of outside sales for Home Depot.
