The news: With little sign of a near-term pickup in housing demand, Home Depot is leaning more heavily on its professional business to fuel long-term growth.

The retailer is out to win more spending from large residential contractors, remodelers, and homebuilders, whose purchases tend to be bigger, more complicated, and more frequent. “Where there is opportunity to gain share is with the more complex purchase,” Mike Rowe, executive vice president for the Pro business, told EMARKETER in an interview.

Pro operations represented more than $90 billion of Home Depot's $164.7 billion in 2025 sales, per the company, and they outperformed DIY in Q1 2026 and posted positive comparable sales. That strength coincided with a rebound in Home Depot’s sales growth, which rose 4.8% in Q1.

The opportunity: Home Depot estimates its Pro addressable market at roughly $700 billion, with about half tied to complex purchases. Acquisitions including SRS Distribution, GMS, Mingledorff’s, and Construction Resources have expanded Home Depot’s reach in roofing, building products, HVAC, and other specialty categories while adding B2B showroom capabilities for high-end projects.

It is also building capabilities inside its existing retail operations, including:

• Trade credit expansion: Customers using trade credit spend an average of 30% more, according to the retailer.
• Sales force growth: Home Depot has expanded its Pro-focused outside and inside sales teams to roughly 1,500 employees from about 250 in 2022.
• Digital tools: Enhanced features help Pros manage accounts and build orders.
• Flexible delivery: More delivery options support jobsite needs.

Rowe said the more complex portion of Pro sales “is outperforming even our Pro sales growth itself.”

Rival Lowe’s is also bolstering its focus on Pro sales with acquisitions of construction supply and interior installation businesses such as Artisan Design Group and Foundation Building Materials, suggesting that the fight for contractor spending is becoming more competitive.

Home Depot plans to continue tuck-in acquisitions and expand SRS, GMS, and Construction Resources, including additional branch openings and showrooms in more markets, Rowe said. The company expects to add 40 to 50 SRS and GMS branches annually.

Despite low housing turnover and elevated mortgage rates, Rowe said the current environment creates an opportunity to gain market share before the market recovers. “As market conditions begin to improve, we’re well positioned to take our growth to the next level and continue benefiting from those share gains,” he said.

Implications for retailers: Home Depot’s Pro strategy shows how retailers can pursue adjacencies to try to grow beyond a sluggish core market. With DIY demand held down by low home sales and consumer caution, retailers may need to go after customers with more frequent, project-driven purchasing needs.

But winning those higher-value customers may require capabilities that go beyond merchandising that could include credit programs, delivery networks, and advanced digital tools.