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The Home Depot is opening four new distribution centers, expanding its pro ecosystem to Detroit, southern Los Angeles, San Antonio and Toronto in 2024. The new facilities are a key component of The Home Depot’s strategy to better serve pro customers – whether they’re the pro customers that The Home Depot has traditionally served through the store, or pros working on larger, more complex projects.
The new distribution centers will stock large, bulky merchandise like lumber, insulation, roofing shingles, and more. With a network of distribution centers stocking a variety of product types, pros can order job lot quantities of the products they need to complete their entire projects, delivered directly to their job sites. The new distribution centers are expected to open in the first half of the year.
Along with its supplier partners, The Home Depot is working to build depth of inventory in each of its top pro markets, with job lot quantities that are meaningfully larger than what it has historically offered through its stores alone. In addition, when jobsite deliveries are fulfilled directly from a distribution center, there is less congestion in local Home Depot stores from staged products in aisles and more inventory on hand to satisfy the needs of its in-store pro customers.
“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. “Over the last several years, we have been investing to deliver a faster, more convenient, differentiated experience for our pros. Our distribution network is one piece of the comprehensive pro ecosystem we’re building to better meet the needs of this important customer.”
The company has already opened similar pro-focused hubs across the U.S., and by the end of 2024, expects to have 17 of its top pro markets equipped with new capabilities for pros. In addition to the new supply chain facilities, The Home Depot is building out its comprehensive pro offerings and capabilities, including:
• Localized product assortment specially tailored for each priority market;
• A dedicated sales force in each of its priority markets;
• Digital tools and personalized experiences, including new order management capabilities to better manage complex pro orders;
• Trade credit, which is currently in pilot with a small number of pro customers; and
• Tiered pro pricing.
Adding to its pro capabilities, Home Depot recently acquired Construction Resources, a leading distributor of design-oriented surfaces, appliances and architectural specialty products for pro contractors focused on renovation, remodeling and residential home building. With showrooms across the East Coast and Southeast, Construction Resources allows The Home Depot to expand the capabilities it offers pro customers, many of whom rely on showrooms as part of their consultative approach to complex renovation and remodel jobs.
The Home Depot already offers a ProXtra loyalty program, which gives pros specialized perks, business tools to better manage and grow their businesses, exclusive sales and events in stores and online, paint rewards and more. The company has a variety of fulfillment options with reliable delivery and prioritization for pros, as well as value-added offerings like tool rental, quote center and more.
