Home Depot is planning on expanding its reach into the pro category, it announced during its Q2 earnings call on Tuesday. Citing recent deals and the growth of its Installation Services business, Home Depot plans on a renewed focus on the professional market.
"During the quarter, we reached an agreement to acquire Interline Brands, a leading national distributor of maintenance, repair, and operations, or MRO, products" said CEO Craig Menear during the call. "Through aligning our pro, MRO and Installation Services functions, we believe we can better serve our pro and consumers through a more streamlined and focused approach."
Interline Brands is a national distributor that focuses on three segments: institutional and commercial facility owners and service contractors, multifamily apartment owners and property managers, and residential service contractors and retailers and resellers. When discussing Interline's future role, Menear suggested that Home Depot will benefit from its size and capabilities.
"So from a strategic standpoint, we think about Interline and the capability to really take an end-to-end approach with our customers. In today's environment, we have the ability in many of these faces to handle the remodel portion of the business," said Menear. " If you think about Interline, they actually do that side and don't have the capability to do the remodel."
Menear also emphasized that Home Depot hopes to expand its share of pro "wallet penetration" and that pro customers already make up about 20% of the sales from Home Depot's private label credit card and managed accounts.