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.
The largest home-improvement chains are reshaping their businesses to serve professional contractors, moving beyond the traditional homeowner customer. Recent deals and new service offerings show a clear strategy: capture more of the professional or Pro market, which industry estimates place at roughly $450 billion.
Two major chains have made landmark distribution acquisitions and rolled out Pro-focused programs worth billions. One chain announced an acquisition worth $18.25 billion of a large building materials distributor and a separate deal of $4.3 billion to buy another distributor. Those moves folded in hundreds of branches and are estimated to expand that retailer’s addressable market by roughly $50 billion. Another chain agreed to buy a building-products distributor for about $8.8 billion, bringing in more than 370 distribution centers and access to about 40,000 new Pro customers.
Professional contractors buy more often, buy in bulk, and pay higher ticket prices than do-it-yourself shoppers. Even though Pro customers may make up a small share of total customer counts, they can account for a far larger portion of sales volume. One large chain’s Pro customers represent around 10% of customers but account for roughly half of total sales. Another chain has historically had a more DIY focus, with Pro sales estimated between 20–25% of revenue, though that share is growing and recently outpaced DIY sales in a key quarter.
Pro work tends to be steadier through market ups and downs. Contractors continue to work on repairs, insurance jobs, and larger renovations even when consumer DIY spending softens. Contractor purchases often favor reliability and service over the lowest possible price, which supports healthier margins for retailers. That predictability and higher lifetime value make Pro customers attractive in the same way large corporate accounts are valuable to software firms.
Retailers are borrowing playbooks from enterprise software. The shift mirrors how software companies moved from chasing millions of casual users to signing larger, more predictable enterprise contracts. Serving Pros requires more hands-on service: dedicated account reps, trade credit, priority delivery, bulk pricing, and digital tools that manage complex procurement. Chains are now investing in loyalty programs, distribution networks, and enterprise-grade technology designed to automate vendor coordination, ensure just-in-time deliveries, and tie materials directly to project schedules.
New digital tools aim to cut friction in procurement by embedding intelligence into workflows — tracking orders, automating reorders, coordinating suppliers, and predicting delays. When these platforms work well, they can become indispensable to contractors who need materials on tight timelines. The goal is to move from a simple retail relationship to a hybrid retail-wholesale-distribution partnership that is central to a contractor’s day-to-day operations.
The pandemic sparked a surge in home improvements, but that DIY boom has cooled. High home prices and persistent mortgage rates mean many homeowners are staying put and choosing to renovate rather than move. These projects increasingly include major renovations, additions of living space, accessory dwelling units (ADUs), and full kitchen and bathroom overhauls — work that typically requires licensed contractors and professional crews.
The large acquisitions and expanded distribution footprints signal a structural bet on Pro dominance. Consolidation in the pro supply chain is becoming a central battleground as chains seek recurring revenue, steadier margins, and deeper integration with contractor workflows. The competition is less about selling the most paint to a homeowner and more about becoming the go-to procurement platform for Pros.
Contractors should see more options geared to their needs: credit lines, prioritized deliveries, bulk pricing, dedicated support, and digital portals that track job-level spending. At the same time, contractors may face a tighter landscape as independent distributors consolidate under major retail banners, which could change pricing dynamics and supplier choices in some markets.
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A regional industry forum focused on infrastructure is scheduled for mid-September at a prominent New York City venue, offering sessions on capital planning and networking with MWBE contractors across the Northeast. The event promises practical guidance for navigating regulatory uncertainty and positioning firms for public-project opportunities. The session is shown as sponsored by a special equipment showcase section.
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A: The Pro market refers to licensed contractors, builders, remodelers, and tradespeople who buy building materials and supplies for commercial and residential jobs. It’s measured by recurring, bulk purchases and is estimated to be about $450 billion.
A: Buying distributors expands a retailer’s distribution footprint, gives faster access to job sites, and brings in loyal Pro customers. These deals boost the buyer’s ability to serve contractors with bulk inventory, credit services, and faster delivery.
A: Contractors may gain access to more tools, credit options, and streamlined delivery. They may also see shifts in local supplier options as distribution networks consolidate. The net effect will depend on local market competition and how retailers price services.
A: Not necessarily. Retailers will continue to serve DIY customers, but the business focus and investments appear to be tilting toward services and products that support Pro reliability and recurring revenue.
A: The analogy compares contractors to enterprise customers in software markets. Like enterprise accounts, Pros deliver larger, steadier revenue and require tailored, service-heavy solutions. Retailers are investing in tech and account services to lock in that higher lifetime value.
| Feature | Why it matters | Example / Data |
|---|---|---|
| Pro market size | Shows scale and revenue opportunity | $450 billion |
| Major acquisitions | Expand distribution and Pro customer base | $18.25B, $4.3B, $8.8B deals |
| Distribution footprint | Shorter delivery times and local market coverage | 760 branches folded in; 370 centers added |
| Pro share of sales | Higher revenue concentration from fewer customers | 10% of customers ≈ 50% of sales at one chain; 20–25% at another |
| Service needs | Account reps, credit, priority service, digital tools | Dedicated accounts, bulk pricing, project portals |
| Technology focus | Automation and predictability for projects | Enterprise-grade procurement platforms and logistics tools |
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