Big-box retailers expand distribution and trade services to serve professional contractors.
United States, September 13, 2025
America’s largest home-improvement chains are shifting from a homeowner-focused model to an account-based strategy aimed at professional contractors. Retailers are investing billions in acquisitions, expanded distribution networks and enterprise-grade services and technology to capture a roughly $450 billion Pro construction market. Multibillion-dollar deals add hundreds of branches and thousands of professional customers, while chains roll out trade credit, dedicated account reps, priority fulfillment, bulk pricing and digital procurement tools. The shift promises deeper local inventory and faster delivery for contractors and signals competition for long-term, higher-margin Pro relationships rather than one-off DIY sales.
Major home‑improvement retailers are shifting their focus sharply toward professional contractors, placing multibillion‑dollar bets on a market valued at roughly $450 billion. The strategy combines large acquisitions of distribution networks with enterprise‑style services and digital tools to turn contractors into long‑term customers. These moves signal a structural change in construction retail: the contest is increasingly about becoming the go‑to platform for Pros rather than only selling to occasional do‑it‑yourself shoppers.
Two nationwide chains have announced acquisitions that expand their wholesale reach and add thousands of professional customers and hundreds of distribution locations. One retailer added more than 760 branches through its largest‑ever deal and a second acquisition of a building products distributor, expanding the company’s addressable market by tens of billions of dollars. The other retailer agreed to buy a distributor that adds over 370 distribution centers and roughly 40,000 Pro customers. These purchases are paired with new loyalty programs, credit options, dedicated account representatives, and enterprise‑grade digital offerings aimed at simplifying procurement for contractors.
Professional contractors drive higher volumes and bigger tickets than occasional homeowners. Although Pros may account for a minority share of customer counts at big stores, they can represent a disproportionately large share of sales — in some cases about half of total sales while being a much smaller portion of overall shoppers. Contractor purchases tend to be more frequent, purchased in bulk, and more resilient through housing market swings because Pro work includes repairs, insurance‑backed projects, and large renovations that continue even during slowdowns.
The pandemic prompted a surge in home projects as millions pursued DIY upgrades and renovations. That boom raised sales for home‑improvement chains, but the DIY rush has since cooled or evolved. High home prices and mortgage rates mean many owners aren’t moving; instead they choose to renovate. Larger renovations, including adding square footage, building accessory dwelling units, and full kitchen or bath overhauls, typically require professional contractors. This demand shift has made the Pro customer increasingly central to long‑term retail strategy.
Recent deals have focused on distribution networks and specialty building‑products firms. By folding established regional distributors into their networks, retailers gain physical branches closer to job sites, established local customer bases, and inventory suited to commercial‑scale projects. These acquisitions also immediately expand credit lines, trade accounts, and the number of contractor accounts that a retailer can serve.
Retailers describe serving Pros in terms similar to how software companies treat enterprise customers. Enterprise accounts in technology are valued for larger, more predictable contract sizes and recurring revenue; similarly, professional contractors deliver deeper lifetime value through repeat bulk purchases and service needs. To capture that value, retailers are providing services that go beyond stocking shelves: dedicated reps, trade credit, priority delivery, bulk pricing, and digital procurement tools that automate ordering, scheduling, and vendor coordination.
Companies are deploying enterprise‑grade platforms to make procurement more reliable and reduce project friction. These tools can automate complex ordering, track deliveries, coordinate multiple vendors, and embed intelligence into workflows so materials arrive when and where needed. The goal is to make the retailer an indispensable partner in a contractor’s day‑to‑day work rather than a stop for occasional supplies.
This consolidation in the pro supply chain turns distribution networks into strategic battlegrounds. The large sums dedicated to acquisitions and tech suggest competition will focus on platform control and service depth. For contractors, the trend promises more convenient ordering, varied financing options, and potentially stronger local support. For independent distributors and smaller suppliers, increased competition from large chains may pressure margins and accelerate further consolidation.
This article presents an industry perspective on shifts in construction retail and the professional market. The views expressed are informational and reflect the source perspective; they do not represent an endorsement by any external publisher or organization.
The professional construction and contractor supply market is estimated at about $450 billion, reflecting recurring, high‑volume purchases from contractors and trade customers.
Acquiring distributors gives retailers more branches near job sites, established contractor accounts, and bulk inventory suited for large projects. It accelerates access to regional markets and tens of thousands of professional customers.
The analogy compares contractors to enterprise software clients: both deliver higher lifetime value, predictable revenue streams, and require service‑intensive relationships. Retailers are adopting dedicated reps, trade credit, bulk pricing, and digital procurement platforms similar to enterprise SaaS features.
DIY shoppers remain important, but retailers are increasingly balancing services so Pros get priority delivery and account management. Retailers aim to serve both groups without sacrificing the convenience DIY customers expect.
Contractors can expect expanded trade programs, more reliable delivery windows, digital tools for ordering and project management, and possibly better procurement pricing or credit options as retailers compete for Pro loyalty.
| Feature | What it means | Example / Numbers |
|---|---|---|
| Pro market size | Large, recurring revenue base from contractors | $450 billion estimated market |
| Major acquisitions | Expands distribution footprint and contractor accounts | Deals adding 760+ branches and 370+ centers; tens of thousands of Pro customers |
| Pro customer value | Higher ticket sizes, frequent purchases, stronger margins | Pros may represent ~50% of sales while being a small % of customer count |
| Service offerings | Dedicated reps, credit lines, priority delivery, bulk pricing | Trade accounts, loyalty programs, account management |
| Technology | Enterprise tools to automate procurement and logistics | Digital ordering, automated vendor coordination, project scheduling |
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