Home Depot’s giant Dallas facility — which could fit about 14 professional football fields — helps the company speed up the replenishment of store shelves and deliver purchases to customers’ doors. It is a key part of the retailer’s strategy to win more business from electricians, remodelers and other home professionals, particularly ones that place big orders.
The pandemic has created a hot real estate market, fueling opportunities for the likes of Home Depot and Lowe’s. As Covid-19 cases fall in the U.S. and homeowners spend more time on planes or at parties, the biggest business opportunity is sales growth from home professionals.
Home Depot has historically drawn more of its business from these more lucrative and frequent shoppers, but Lowe’s is trying to attract more pros, too. About 45% of Home Depot’s total sales come from pro customers versus about 20% to 25% at Lowe’s, according to the companies.
In recent months, executives at both firms have said they are seeing pent-up demand for professional projects as people feel comfortable inviting contractors back into their homes and dine out and travel more instead of ticking off a list of DIY projects.
“In talking to the pro, they all have very strong books of business,” Home Depot president and chief operating officer Ted Decker said this week. “They all have backlogs.”
The home-improvement retailers will have to make sure they have plenty of inventory to take advantage of that demand, even as supply chain challenges — such as congested ports — delay shipments.
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