The Home Depot

The Home Depot (NYSE: HD) is a retail company that specializes in home improvement products. The company was founded in 1978 and has since grown to become the largest home improvement retailer in the US with over 2,200 stores across North America as of 2022. The company is reported to hold the largest market share of around 60% in the home improvement market in the US in 2022 and was ranked 18th on the Fortune 500 list in 2021. The Home Depot generated over USD 100 billion in annual sales for the first time in 2018 and has set a target to reach USD 200 billion in annual sales. The company’s FY2023 (year ending January 31st) revenue stood at USD 135.8 billion.

A Home Depot store stocks around 30,000 to 40,000 items during a year, which includes both the national brand name, as well as proprietary products. The company is popular for the building materials and decor products it offers. Its building material supplies include lumber, concrete, roofing, insulation, fencing, drywall, gutters, and composite decking, while decor products offered include appliances and storage solutions, alongside kitchen and bath fixtures and paint. Apart from this, the company also sells hardline products including maintenance, repair, and operations (MRO) products such as hardware, tools, and lawn and gardening equipment. The Home Depot also provides several services such as home improvement installation services and tool and equipment rentals. The company serves both professionals and consumers. Professional customers (Pros) are mainly made up of renovators, contractors, property managers, and tradesmen such as electricians, plumbers, and painters. Consumers can either be DIY (do-it-yourself) customers, who buy products and complete their own projects, or DIFM (do-it-for-me) customers, who use professionals to complete their projects. 

The company operates in North America, with more than 90% of sales being generated in the US, and the rest in Canada and Mexico. This is also reflected by the number of stores that operated across North America and beyond: 2,007 stores in the US, 182 in Canada, and 133 in Mexico, in FY2023. The company sells the products via its stores, as well as its online websites (homedepot.com: its primary website; blinds.com: its website for custom window coverings; and thecompanystore.com: its website featuring textiles and decor products).