The Home Depot Inc. announced March 14 that it will open four new distribution centers in the first half of 2024 — three in the United States and one in Canada.

This is a “key component” of the retailer’s strategy to better serve its pro customers, Home Depot said in a statement.

“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, senior vice president of outside sales for The Home Depot. “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.”

Home Depot is No. 4 in the Top 1000. The database is Digital Commerce 360’s ranking of North America’s online retailers by web sales. Digital Commerce 360 categorizes Home Depot as a Hardware & Home Improvement retailer.

Home Depot distribution centers

The new Home Depot distribution centers will be in Detroit, southern Los Angeles, San Antonio and Toronto. Home Depot said there is less congestion in its stores from staged products in aisles — and more inventory on hand for in-store pro customers — when its distribution centers fulfill job-site deliveries.

“The new distribution centers will stock large, bulky merchandise like lumber, insulation, roofing shingles and more,” Home Depot said. “With a network of distribution centers stocking a variety of product types, pros can order job lot quantities of the products they need to complete their entire projects, delivered directly to their job sites. The new distribution centers are expected to open in the first half of the year.”

Home Depot said it is building out its comprehensive pro offerings and capabilities. They include:

• Digital tools and personalized experiences. This includes new order management capabilities to better manage complex pro orders.
• Trade credit. This is currently in pilot with a small number of pro customers.
• Localized product assortment tailored for each priority market.
• A dedicated sales force in each of its priority markets.
• Tiered pro pricing.

Boosting sales to Home Depot pro customers

Home Depot acquired Construction Resources in December as part of its plan to expand sales to its pro customers. Construction Resources is a distributor for design-oriented surfaces, appliances and architectural specialty products.

In Q4, Home Depot fulfilled nearly half of its online sales through its physical stores, said William Bastek, executive vice president of merchandising, in a Feb. 20 earnings call with investors. It opened 13 stores in its 2023 fiscal year — eight in the U.S. and five in Mexico — bringing the number of Home Depot stores to 2,335. Ann-Marie Campbell, senior executive vice president, said in the earnings call that Home Depot plans to open 80 new stores in the next five years, including 12 new stores in its fiscal 2024.

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