Home Depot to Open Four New Distribution Centers for Wider Variety and Larger Orders

Home Depot is set to open four new distribution centers in the first half of this year in Detriot, Los Angeles, San Antonio, and Toronto. This will make room for the bulky size, wider variety, and larger orders of products, like lumber, shingles and insulation, etc.

Home Depot says the expansion is part of the company’s yearlong strategy to attract pros who handle bigger and more expensive projects, such as kitchen renovation or a major renovation. Chip Devine, Home Depot’s senior vice president of outside sales, believes beating the lackluster expectations could depend on pro customers who are usually steadier and bigger spenders compared to DIY customers.

The company is also looking at recruiting more specialized salespeople and services. Devine said they interact with their salespeople five times a week. “That relationship over time, you become a partner to their business, and that is easier than capturing the elusive consumer. Plus, pros who handle more complex projects have historically used Home Depot like a convenience store where they buy just a few items. That gives Home Depot a lot of room to grow as it adds capabilities to handle pros’ entire orders.”

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Devine pointed out that DIY customers have become a tough sell. He said they have made fewer discretionary purchases and tackled smaller home projects in recent quarters. The executive highlighted that Home Depot is changing other aspects of its business to support pros who handle complex and pricey projects. “It is piloting a program that offers trade credit to pros, which means that Home Depot underwrites a large order and does not charge the pro customer until it is delivered.”

Ted Decker, CEO of Home Depot, had earlier said that expanding the pro-business was one of the three key priorities for 2024. “Before Home Depot came along, a consumer doing a project was running to all these different stores. You’ve got a hardware store. You’ve got a paint store. You’ve got a flooring store. The pro’s doing the same thing.”

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Nandika Chand