Big-box Chains Place Billion-Dollar Bets to Win Pro Construction Market

United States, September 13, 2025

News Summary

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.

Big-box retailers pivot to Pro customers as they chase a $450B professional construction market

The two largest home-improvement retailers are pouring billions into courting professional contractors, aiming to redefine themselves as essential partners for pros rather than just showrooms for DIY enthusiasts. The professional market is described as a $450‑billion opportunity, driven by frequent, high‑volume purchases and priorities like reliability, bulk pricing, and timely delivery. Home Depot and Lowe’s are expanding distribution networks, broadening loyalty programs, and embedding enterprise‑level tools to manage procurement at scale, signaling a shift from consumer focus to a platform mindset for pros.

What is driving the shift toward professionals?

The COVID‑19 home improvement surge put a lasting stamp on how people approach renovations, but the post‑pandemic period has cooled the DIY frenzy while sustaining steady renovation activity. High home prices and stubborn mortgage rates have kept many homeowners in place, nudging them toward renovating rather than moving. Renovations increasingly involve expanding living space, adding ancillary units, and overhauling kitchens and baths. These larger, more complex jobs typically rely on professional contractors, making pros a more stable and lucrative customer base for retailers. In this environment, the professional market becomes a central pillar of growth for big‑box chains.

How retailers are retooling their business models

Retailers are increasingly positioning themselves as hybrid stores that blend retail and wholesale workflows. Strategies include acquiring distribution networks, expanding loyalty programs, and offering tools that resemble enterprise software relationships. By treating professional customers as long‑term partners, these chains aim to secure repeat business, steadier margins, and more predictable revenue streams. The shift mirrors how software moved from consumer apps to enterprise solutions, where large, multi‑year contracts and upfront commitments yield greater lifetime value. Pro customers now expect dedicated account support, trade credit lines, priority service, bulk pricing, and digital tools to manage projects—features these retailers are increasingly embedding into their operations.

Major acquisitions and what they bring

Significant deals underscore the scale of the push into the Pro market. Home Depot announced an $18.25‑billion acquisition that folds in a wide network of branches and suppliers, marking its largest deal to date and expanding its pro footprint nationwide. A separate acquisition valued at about $4.3‑billion adds yet more distribution capacity to support pro orders. These moves bring a large, integrated supply chain closer to contractors and help synchronize procurement flows with project timelines.

Lowe’s has pursued its own heavy investment by agreeing to acquire a major drywall and interior construction materials distributor for $8.8‑billion. This deal expands Lowe’s distribution network by hundreds of centers and connects the retailer to tens of thousands of professional customers through that distributor’s network. Taken together, the acquisitions create a more robust backbone for serving Pro customers at scale, with expanded inventory, faster delivery, and stronger service commitments.

What these changes mean for pros and the retailer relationship

Pro customers are characterized by higher purchase frequency, larger ticket sizes, and stronger loyalty than DIY shoppers. They value reliability, consistent quality, favorable terms, and the ability to coordinate multiple vendors within a single platform. By combining loyalty programs with advanced procurement tools, Home Depot and Lowe’s are moving toward enterprise‑like relationships that emphasize service depth, credit provisions, and digital project management capabilities. Pros tend to be more predictable in their spending and more resilient during downturns, making them attractive anchors for retailer growth.

Operational and market implications

The consolidation of pro supply chains is being described as the next battleground in construction retail. With the professional market at the center, retailers are rethinking distribution, inventory visibility, and cross‑channel service. The integration of advanced analytics, supplier coordination, and automated workflows is aimed at reducing costs and friction in projects, ultimately making retailers indispensable partners to contractors. The broader effect is a shift toward a platform model where retailers are not just selling materials but orchestrating the entire procurement and delivery process for professional construction work.

Impact on DIY customers and broader industry trends

While the focus pivots to pros, DIY customers are not disappearing. The market’s evolution shows a segmentation where pros finance, schedule, and execute large jobs with greater efficiency, while DIY activity remains for smaller tasks. The new dynamic benefits contractors through steadier supply and improved margins, and it benefits retailers through stable demand and higher customer lifetime value. As the pro segment grows, the landscape will likely feature more integrated services, streamlined logistics, and digital tools that simplify complex orders across multiple job sites.

Looking ahead

The push to dominate the Pro market signals a long‑term commitment to serving professional contractors as core customers. With expanded distribution networks, larger acquisitions, and the rollout of enterprise‑grade technology, the major retailers are reshaping themselves into hybrid retail–wholesale platforms designed to meet the daily needs of pros. The outcome could redefine how contractors source materials, manage inventories, and coordinate with suppliers from the first quote to project completion.

Frequently Asked Questions

What is the size of the professional construction market? The professional market is described as a $450 billion opportunity with ongoing demand driven by frequent, high‑value purchases and ongoing project needs.

Which companies are making large moves to capture the Pro market? The two largest home‑improvement retailers are pursuing major acquisitions, expanded loyalty offerings, and procurement tools to deepen ties with professional contractors.

What do the major acquisitions entail? Large distributors are being acquired to expand reach, increase the number of branches or centers, and add thousands of professional customers to each retailer’s network, thereby expanding the addressable market and improving delivery and service capabilities.

How do loyalty programs and tech help Pros? Loyalty programs, trade credit options, and enterprise‑grade procurement tools help Pros manage purchases, track orders, and coordinate multi‑vendor workflows, leading to more consistent service and stronger partnerships.

What is the impact on DIY customers? DIY activity continues at a lower profile, but the overall shift focuses retailers on pro customers who provide steadier revenue and higher margins, potentially changing the balance of store visits and product mix over time.

What future trends are expected in construction retail? Expect deeper platform strategies, more integrated delivery, enhanced data analytics, and procurement automation that align with contractor workflows, reinforcing the role of retailers as day‑to‑day partners in professional construction projects.

Feature	Description
Market focus	Professional construction procurement and services become central to growth for big‑box retailers.
Market size	Described as a $450B opportunity with high purchase frequency and larger ticket sizes from pros.
Strategic moves	Expanded distribution networks and loyalty programs; enterprise‑like tools for procurement and project management.
Acquisitions	Major deals include large distributors that add branches, centers, and pro customers; expands addressable market.
Pro vs. DIY	Pros provide steadier revenue and better margins; DIY remains but with a shifted emphasis toward professional buyers.
Operational model	Retailers are moving toward hybrid retail–wholesale platforms to embed in contractors’ daily workflows.
Technology role	Procurement platforms, digital tools, and analytics help simplify workflows and improve delivery accuracy.
Future outlook	Consolidation in pro supply chains and a push to be the go‑to platform for pros across multiple job sites.