My MBA Career: Home Depot to Open Four Distribution Centers to Boost Sales Growth

Last Updated on March 15, 2024 by Robert C. Hoopes

Home Depot, a leading home improvement retailer, has announced plans to open four new distribution centers in Detroit, Los Angeles, San Antonio, and Toronto. These facilities are specifically designed to cater to professionals such as remodelers and contractors, providing them with a seamless experience for their projects.

The new distribution centers will be equipped to handle larger orders and bulky products like lumber, shingles, and insulation, ensuring that these items are delivered directly to job sites. Each center will be approximately 500,000 square feet in size, making them significantly larger than the average Home Depot store.

This expansion is part of Home Depot’s strategy to attract professionals handling major renovation projects and increase sales from these customers. With a focus on winning more of the pro business, the company aims to return to growth in a challenging housing market.

Despite a 3% decline in sales in the last fiscal year, Home Depot expects total sales to grow by about 1% this year, with a specific emphasis on pro customers. To better serve professionals with complex and sizable projects, the retailer is offering trade credit to pros and expanding its sales force.

CEO Ted Decker has identified expanding the pro business as one of the company’s key priorities, along with building new stores and enhancing customer experience. This strategic move demonstrates Home Depot’s commitment to meeting the needs of professionals in the home improvement industry.