Home Depot writes a new chapter for the pro
LAS VEGAS—"It’s about time.”
That what was the slogan writ large on the wall at The Home Depot booth here during the International Builders’ Show, where the world’s largest home improvement retailer made its return after a 16-year absence.
The double-meaning of the slogan also reflects the company’s pursuit of time-saving, efficiency-building programs to serve its pro customer. And according to Chip Devine, Home Depot’s senior vice president of outside sales, the focus on the pro is a transformative journey for the retailer.
“We are a different Home Depot than we were a year ago,” Devine said. “We’re very different than two years ago, and really different than three years ago. But we are just in the beginning.”
At the heart of the change is the ambitious effort to expand its relationship with the pro customer — moving way beyond a sort of convenience-store for contractors and into the realm of what the company calls the “Complex Pro” for a larger share of the construction market.
The effort to expand with the pro is so significant that Devine described it as the “next great chapter of growth” in the storied history of the company. The first chapter begins with the founders and the made-from-scratch beginnings of the warehouse home center model; the second features the Frank Blake-led investment in interconnected retail and e-commerce; and the third is the current expansion with the pro.
The math behind the emphasis checks out. According to Devine, professionals generate nearly 50% of the company's revenue. And since acquiring SRS Distribution (see sidebar), the company estimates its total addressable market is about $525 billion. Recognizing this, Home Depot has made significant investments in infrastructure and technology to meet the specific needs of contractors and builders.
The SRS effect
Home Depot's acquisition of SRS Distribution, a leading supplier of roofing, landscaping, and specialty building products plays a "crucial" role in the company's strategy to enhance its pro services.
“SRS operates in what we call trade verticals, with roofing comprising about 70–75% of their business,” Devine said. “With SRS as part of our ecosystem, we gain a network of 750 locations and a transportation fleet of over 2,000 trucks. Over time, these assets will be integrated into Home Depot’s operations, enhancing our ability to serve professional contractors.”
While Home Depot and SRS currently operate as separate businesses, there is already crossover in key areas like roofing materials. Home Depot’s quote center, for example, allows pro customers to place orders that are then fulfilled by SRS, ensuring efficient deliveries.
“This is a long-term integration,” Devine noted. “Right now, we’re focused on making sure everything connects seamlessly, but the cultural alignment between SRS and Home Depot is already there.”
“A small contractor may use us end-to-end in our stores, but we understand that larger pros need more than just cash-and-carry services,” Devine said. “We’re building out our pro ecosystem to provide solutions that save time and streamline project management.”
The company’s investments in infrastructure and technology were the main focus of the Las Vegas exhibit, which was organized into six pillars of growth: Sales and support; digital tools, house account, Pro Supply House, delivery and fulfillment and Path to Pro (a platform connecting tradespeople with jobs).
While Home Depot stores remain a crucial touchpoint for pros—typically within a five- to ten-minute drive from job sites—the company has been investing in logistics infrastructure to enhance delivery capabilities. This includes flatbed distribution centers, direct fulfillment centers, and a more sophisticated order management system.
Previously, contractors had to pay upfront and wait for materials to arrive. Now, Home Depot is introducing an order management system that enables order intake, planning, and orchestration, followed by delivery and post-delivery billing—aligning its approach more closely with wholesale suppliers.
“We know that our delivery services needed to improve,” Devine acknowledged. “We’re doubling down on assets and capabilities to make sure our contractors get materials exactly when they need them.
The success of these investments in FDCs, direct fulfillment centers and sales team expansion were described by Senior Executive Vice President Ann-Marie Campbell during the company’s fourth quarter earnings call (which coincided with IBS.) They led to more than $1 billion in incremental sales on an annualized basis in the 17 markets where they are in various stages of maturity.
The FDC network alone has “enabled faster delivery, expanded fulfillment options, and more consistent on-time and complete delivery of larger orders directly to the job site,” she said.
“And not only are we gaining traction with the larger pros that work on complex projects, we are also seeing meaningful lift in sales with all pros across all purchase occasions,” Campbell said.
The company’s emphasis on the pro customer in early 2025 is faced with home-building market clouded by uncertainty (think tariffs). But Devine says Home Depot has weathered economic fluctuations before, including supply chain disruptions (think Covid) and shifts in consumer spending habits. Devine stressed that the company remains committed to offering competitive pricing and reliable service, regardless of external challenges.
“No one has a crystal ball,” he said. “We get asked about tariffs all the time, but the reality is that over half of our products come from U.S. suppliers, and we’ve diversified our supply chain significantly. The key for us is always to focus on providing value to our customers.”
Time will tell to what extent the company’s focus and its six pillars lead to growth.
