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 nation’s largest home-improvement chains are shifting from a homeowner-focused model toward a service- and account-based approach aimed at professional contractors. At stake is a Pro market roughly valued at $450 billion, a segment characterized by frequent, bulk purchases and higher margins than occasional DIY trips. Retailers are backing that bet with multibillion-dollar acquisitions, expanded distribution networks, and enterprise-style services and technology.
The pandemic sparked a widespread surge in do-it-yourself projects that boosted sales across big-box retailers. That initial boom has since cooled and evolved. With high home prices and mortgage rates limiting moves, many owners are opting to renovate—often enlarging space, adding additional dwelling units, or fully overhauling kitchens and baths. Those larger projects typically require licensed contractors and professional crews, creating a steady base of demand that retailers now view as more predictable and profitable than sporadic DIY spending.
Recent deals show how serious retailers are about the trade channel. One leading chain announced an $18.25 billion acquisition of a national building products distributor that brought in roughly 760 branches and is estimated to expand that chain’s addressable market by about $50 billion. The same retailer also agreed to buy another distributor for $4.3 billion, strengthening its reach in wholesale building materials.
A large competitor agreed to an $8.8 billion purchase of a distributor specializing in drywall, insulation and interior supplies. That deal adds more than 370 distribution centers and brings access to around 40,000 new professional customers through the acquired company’s network.
Professional contractors drive sales in ways that homeowners do not. Though they may represent a minority of customers by headcount, their purchases often account for a disproportionate share of revenue. One large retailer reports that Pro customers make up about 10% of its customer base but contribute roughly half of total sales. Another chain has traditionally had a larger DIY mix, with Pro sales making up somewhere in the 20–25% range, though that Pro share has been growing and recently outpaced DIY sales in early 2025.
Pro purchases tend to be larger, repeat, and more predictable. Contractors often buy in bulk, require reliable next-day delivery or scheduled drops, and value dependability over the absolute lowest price. Many projects are steady work—repairs paid by insurance, maintenance, new construction and multi-family jobs—providing a more resilient revenue stream through market swings.
To win and keep Pros, big-box chains are moving beyond self-service aisles. They are rolling out trade credit, dedicated account representatives, priority service, bulk pricing, and enhanced loyalty programs. They are also embedding enterprise-grade digital tools that mirror software-as-a-service models used in other industries: online procurement portals, project-based ordering, vendor coordination, and logistics automation.
The analogy is deliberate. Just as software firms shifted from consumer apps to enterprise accounts to capture larger lifetime value and predictable contracts, construction retailers are treating professional contractors as enterprise clients. The result is a hybrid retail–wholesale distributor model in which stores, branch networks, and digital platforms work together to become indispensable to crews on the jobsite.
Contractors can expect deeper local inventories, faster delivery windows, and expanded trade services from major chains. For the industry, consolidation of distribution and expanded loyalty and tech offerings signal a structural contest for which company becomes the default platform for contractors. The billions being spent on acquisitions and technology point to competition over long-term customer relationships rather than one-off product sales.
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The professional construction and contractor market is estimated at around $450 billion.
Retailers are acquiring distribution networks to reach more professional customers directly, expand local inventory, speed delivery, and secure steadier, higher-margin sales.
Pro customers buy more frequently, in larger quantities, and often prioritize reliability and bulk pricing, which creates higher lifetime value and more predictable revenue for retailers.
Retailers are offering trade credit, dedicated account reps, priority fulfillment, bulk pricing, loyalty programs, and enterprise-grade digital tools for procurement and logistics.
Home improvement stores will likely continue serving homeowners, but investments geared toward Pros could shift inventory mix and service focus in some locations toward trade needs.
| Feature | Why it matters | Example metrics |
|---|---|---|
| Market size | Defines the revenue opportunity from professional contractors | $450 billion |
| Major acquisitions | Expand distribution, customer lists, and local inventory | $18.25B, $4.3B, $8.8B deals; 760 and 370 branches/centers noted |
| Pro customer value | Higher frequency, larger ticket size, greater loyalty | Pro buyers can represent ~50% of sales while being 10% of customers for some chains |
| Service upgrades | Account reps, trade credit, priority fulfillment and bulk pricing | Expanded loyalty programs and account services |
| Technology | Enterprise-grade platforms for procurement and logistics | Tools for project-based ordering, vendor coordination and delivery scheduling |
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