Home Depot’s investments in its Pro ecosystem have yielded meaningful results, with the company reporting over $1 billion in incremental business-to-business (B2B) sales annually across 17 markets.
Senior executive vice president Ann-Marie Campbell highlighted these achievements while underscoring the retailer’s continued focus on enhancing the professional shopping experience across all purchasing channels.
“Over the last few years, we’ve made investments in our stores, as well as through our Pro ecosystem, to improve the shopping experience for all of our Pros, regardless of their purchase occasion,” Campbell told investors on the retailer’s Q4 2024 earnings call. “We know that all Pros shop our stores. Over the years, we have been investing across our stores to simplify and enhance the in-store shopping experience.”
The Home Depot Inc. ranks No. 4 in the Top 2000 Database. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual ecommerce sales. Home Depot is also the top-ranked retailer in the Top 2000’s Hardware & Home Improvement category.
How Home Depot increased its B2B sales
Home Depot’s B2B strategy includes:
- Improving freight flow processes
- Leveraging technology for increased on-shelf availability
- Expanding inventory with deeper assortments and job lot quantities
- Refining its labor model
Additionally, the introduction of customer experiences managers (CXMs) and enhanced selling tools with customer relationship management (CRM) capabilities have helped Home Depot better serve professional contractors.
“These capabilities include a broader and deeper assortment of products in the fulfillment distribution center (FDC); dedicated sales teams that provide a higher level of service; enhanced selling tools with CRM capabilities to better serve our customers; additional digital capabilities through a B2B website, loyalty, and preferred pricing programs,” Campbell added.
The company’s targeted investments have not only driven growth with large contractors managing complex projects but have also yielded a meaningful increase in sales across all professional categories and purchase occasions. Despite these gains, Campbell acknowledged that there is still work to be done to improve the service, including enhancements in delivery experience, trade credit offerings, and order management.
“In fact, these investments have driven over $1 billion in incremental sales on an annualized basis in 17 markets,” Campbell said. “Even in these 17 markets, we are in different stages of maturity, and there is still a lot to do to better serve all our Pros.”
Home Depot full-year sales in 2024
Meanwhile, Home Depot’s full-year 2024 sales grew by $6.8 billion. That reflects a 4.5% year-over-year increase to $159.5 billion. However, comparable sales for the year declined by 1.8% both in the U.S. and overall.
In March 2024, Home Depot announced the acquisition of SRS Distribution for $18.25 billion, a major move aimed at strengthening its distribution network and expanding its reach in the professional contractor market. The deal enhanced Home Depot’s capabilities in serving roofers, landscapers, and pool contractors by leveraging SRS’ established distribution channels.
SRS Distribution is a specialty trade distribution company. It generated approximately $10 billion in revenue in 2023. Of that, it generated $1 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The acquisition brings a strong logistics infrastructure and a deep customer base, further solidifying Home Depot’s ability to provide targeted services to professional customers.
Home Depot CEO Ted Decker highlighted the strategic importance of the acquisition.
“SRS Distribution brings deep industry expertise and a robust network that aligns with our Pro-focused strategy,” Decker said. “This acquisition accelerates our ability to deliver enhanced solutions and strengthens our relationships with professional customers.”
By integrating SRS Distribution into its operations, Home Depot aims to:
- Improve product availability
- Optimize distribution efficiency
- Increase engagement with professional contractors
The move cements Home Depot’s commitment to growing its B2B sales segment. It also capitalizes on increased demand for specialized trade distribution services.
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