The other morning on LinkedIn, Jim Bennett, national business development manager at True Value, said 45% of Home Depot’s sales are to pro customers. Can’t be that high, can it?
Actually it is. Depot’s 2019 annual report says customers with contractor accounts (3rd party) made up 23% of its sales. 45% is plenty credible when you throw in credit card sales.
With $110.2 billion in 2019 sales and 2,291 stores, that works out to $21,650,480 in contractor sales per store.
Don’t know what you’re doing to eat some of Depot’s lunch, but they’re spending $1.2 billion to eat more of yours.
Depot is building 150 distribution centers across the U.S. “Our goal,” says senior VP/supply chain Stephanie Smith, is “same- or next-day delivery to 90% of the U.S. population.”
You’re probably better at it, but they just need to be adequate to peel off some of your pro customers. The flip side is that it isn’t difficult to peel off some of theirs, too. Just takes a little effort.