In a further investment to cater to its contractor customer base, The Home Depot is set to enhance its logistics network by opening four new distribution centers during 2024 in major metro markets.
The Do-It-Yourself and contractor supplies retailer and distributor announced March 14 that the company will open new DCs in Detroit, southern Los Angeles, San Antonio and Toronto. It added that these new facilities are a key component to The Home Depot’s strategy to better serve pro customers — whether they are pros that the company has traditionally served through its stores, or pros working on larger, more complex projects.
The new DCs are expected to open in the first half of the year, joining similar pro-focused hubs across the United States. By the end of 2024, The Home Depot expects to have 17 of its top pro markets equipped with new capabilities for pros.
They will stock bulky merchandise like lumber, insulation, roofing shingles and more. Ultimately, they will enable pros to order job lot quantities of the products they need to complete their entire projects, delivered directly to their job sites.
- PREMIUM: Home Depot’s HD Supply Eyes Deeper MRO Market Penetration (Aug. 2023)
- PREMIUM: Home Depot’s Plan to Serve the Untapped Contractor Market (July 2023)
The Home Depot added that, along with its supplier partners, it is working to build depth of inventory in each of its top pro markets, with job lot quantities that are meaningfully larger than what the company has historically offered through its scores alone. A benefit of fulfilling jobsite deliveries directly from a DC, the company noted, there is less congestion in local Home Depot stores from staged product in aisles and more inventory on hand to satisfy the needs of 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, The Home Depot Senior Vice President of Outside Sales. “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.”
In addition to the new supply chain facilities, The Home Depot said it 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, in late 2023 The Home Depot acquired Construction Resources — a 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.
Besides its logistics capabilities that caters to pros, The Home Depot 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.
Related Posts
-
In line with The Home Depot's efforts to grow its underserved Pro market, the retail…
-
Construction Resources will allow Home Depot to expand the capabilities it offers professional contractors, a…
-
The company said Pro customers outperformed DIY in the quarter, but by the narrowest margin…