The Home Depot (NYSE:HD) announced on Thursday that it is making leadership portfolio changes to accelerate innovation and capture a greater share of the $1.2 trillion home improvement market.
The company said it is consolidating key functions across merchandising, loyalty, financial services, its professional contractor business and technology to speed innovation and create a more seamless shopping experience.
Targets $700 Billion Pro Opportunity
Home Depot is sharpening its focus on professional customers, a market it estimates is worth about $700 billion.
The retailer is transforming its Office of Integration into the Office of Pro Acceleration, led by Chief Financial Officer Richard McPhail.
The group will coordinate Home Depot Pro, HD Supply, SRS and Construction Resources while developing shared capabilities in customer relationship management, product catalogs and fulfillment.
Home Depot’s Pro network includes more than 2,360 stores, 1,300 branches, 325 customer-facing warehouses and about 16,000 delivery assets.
Streamlines Merchandising, Loyalty
The company also moved its private-label merchants into its core merchandising organization under Billy Bastek, executive vice president of merchandising. The company said the move should improve product alignment and bring new products to market faster.
Meanwhile, Home Depot combined its customer experience, online, financial services and loyalty teams under Jordan Broggi, executive vice president of interconnected retail.
The retailer expects the structure to support more personalized financial offers and shopping experiences across its stores and digital channels.
“To capture greater share of this enormous opportunity, our focus is clear: drive our core and culture, deliver a frictionless interconnected experience and win the Pro,” Chair, President and CEO Ted Decker said.
AI, Technology Teams Come Together
The company is also consolidating its store, supply chain and Pro product technology teams under Chief Technology Officer Fran Bell.
Bell’s organization oversees artificial intelligence, data science, product management, user experience and technology. Home Depot said the alignment should help it bring new technology to market faster.
Home Depot Price Action
HD Price Action: Home Depot shares were down 1.65% at $349.77 at the time of publication on Monday, according to Benzinga Pro data.
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