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.
Home improvement chains are investing heavily in contractors, shifting from a focus on weekend DIY shoppers to building long-term relationships with professional builders and trades. Major recent deals and new technology pushes signal a strategic bet that the professional construction market, estimated at $450 billion, will deliver steadier, higher-margin business.
One leading retailer announced its largest-ever acquisition at $18.25 billion to buy a national distributor that adds roughly 760 branches. The same company also completed a separate deal for about $4.3 billion to acquire another building-products distributor. Another major chain agreed to buy a drywall and insulation distributor in an $8.8 billion transaction that brings more than 370 distribution centers and access to roughly 40,000 professional customers. The largest acquisition alone is expected to expand one retailer’s addressable market by about $50 billion.
Professional contractors buy more often, purchase in bulk, and spend far more per transaction than typical homeowners. In one large chain, pros make up approximately 10% of the customer base but account for about half of total sales. Another chain historically leaned toward DIY customers, with pro sales representing roughly 20–25% of company sales, but reports show the pro share growing and in a recent quarter pro sales outpaced DIY sales.
Contractor purchases offer greater stability and margins. Pro work is often steady and includes jobs that continue in down markets, such as insurance-driven repairs and maintenance. Professionals place a premium on reliability and quality, which supports better margins than one-off consumer purchases.
Retailers are reshaping themselves into hybrid retail‑wholesale distributors. That transformation combines store-front reach with a deeper distribution network and service layers tailored for contractors. Strategic acquisitions of distributor networks and the addition of expanded pro loyalty programs signal that the contest is becoming less about selling paint to DIYers and more about becoming the go-to platform for Pros.
Leaders in the category are borrowing lessons from software-as-a-service companies. The analogy compares homeowners to individual app users and contractors to enterprise accounts. Enterprise clients deliver greater lifetime value through larger order sizes and repeat business, and they often require multi-year, predictable relationships.
To serve pros at scale, chains are investing in enterprise-grade digital tools that streamline procurement, automate vendor coordination, and help ensure materials arrive on schedule. These tools include project management features, credit and invoicing systems, dedicated account representatives, bulk pricing, and priority delivery. Embedding intelligence in workflows reduces friction and can make a retailer’s platform indispensable to contractors.
The pandemic triggered a surge in home improvement activity as millions of homeowners invested in upgrades and DIY projects. In recent years the DIY boom has cooled or evolved. High home prices and persistent mortgage rates have encouraged many owners to renovate rather than move, and renovations increasingly involve larger jobs such as adding square footage, building ADUs, or revamping kitchens and baths—projects that typically require professional contractors.
As more renovation work shifts to pro-led scopes, the economics favor suppliers that can provide distribution scale, credit and invoicing options, specialized inventory, and digital project support. Consolidation in the pro supply chain is emerging as a central battleground for market share.
Contractors should expect more account-focused services from large retailers, including assigned representatives, trade credit lines, bulk pricing and dedicated pickup or delivery windows. Digital features aimed at project procurement and scheduling will become more common, while loyalty programs will increasingly offer terms and benefits tailored to pro buying patterns.
The billions flowing into acquisitions and technology show retailers are competing to become the dominant platform for contractors. That concentration could improve efficiency for large contractors but may squeeze smaller independent distributors. Suppliers and regional distributors will be watching whether consolidation leads to better service and pricing, or to tighter control by national platforms.
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Large home centers are placing structural bets that professionals will drive future growth. Through acquisitions, expanded distribution, loyalty programs and enterprise-style technology, these retailers aim to convert contractors into long-term, high-value customers. For the construction industry, the result may be faster, more predictable supply chains—but also a market shaped increasingly by a few dominant platforms.
The professional construction market targeted by major home centers is estimated at about $450 billion.
Retailers are buying distribution networks to gain scale, reach more pro customers, control supply chains, and offer wholesale-style services such as bulk inventory, dedicated delivery and trade credit.
Pros make larger, more frequent purchases and favor reliability and service, which create higher margins and steadier revenue compared with sporadic consumer DIY shopping.
Investments include enterprise-grade procurement tools, project management features, account portals, automated ordering and logistics platforms to ensure materials arrive on time.
Consolidation could lead to greater efficiency and broader service options, but may also pressure smaller distributors on price and market access as larger platforms gain scale.
| Feature | Details | Impact |
|---|---|---|
| Large acquisitions | Multi-billion dollar deals adding hundreds of distribution centers and tens of thousands of pro customers | Rapid expansion of addressable market and distribution reach |
| Pro customer economics | Pros buy in bulk, more often, and value service over lowest price | Higher margins and more predictable revenue |
| Enterprise-style tech | Procurement platforms, account portals, project tools and logistics automation | Lower project friction and deeper customer lock-in |
| Service offerings | Dedicated reps, trade credit lines, priority delivery, bulk pricing | Improved loyalty and contractor retention |
| Market trend | Shift from consumer-focused to pro-centric business models | Construction retail becomes a battleground for platform dominance |
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