Shoppers still want projects that lift comfort and value, yet timing feels delicate. As rates pinch budgets and caution rises, Home Depot bets on faster service, deeper assortments, and steadier pricing so stalled jobs can move again. Sales hold, foot traffic wobbles, and pros need reliable drops and clear timelines. A broader distribution network aims to cut waiting, smooth bids, and keep momentum so households act when credit finally eases.
Why shoppers pulled back on big renovations
Customers paused large, financed remodels as borrowing felt heavy. U.S. comparable sales rose 1.4% in the quarter, while store visits fell 2.6% year over year. Financing costs pushed families to delay expensive work, even as small purchases continued. Paint and tools still moved, yet big quotes waited.
On August 19, executives described the split. Merchandising chief Billy Bastick said shoppers avoid big discretionary projects reliant on credit. CFO Richard McPhail noted demand persists, yet rate levels slow starts. At Home Depot, leaders read projects as deferred, not canceled, which builds a pipeline once financing looks manageable again.
Housing keeps caution in place because mortgages stayed above 6% since 2022. In July, existing-home sales rose 2% from June while unsold inventory edged 0.6% higher. The median price reached $422,400. Rates spiked during peak season, said Keller Williams economist Ruben Gonzalez, so buyers waited or downsized plans.
How Home Depot aims to restart stalled projects
The company closed a $5.5 billion purchase of GMS, a distributor for drywall, ceilings, steel framing, and complementary lines. Adding capacity where pros source heavy materials shrinks lead times and cuts job-site friction. Faster drops and service help projects restart because subs schedule confidently and crews avoid delays.
This deal follows last year’s $18.25 billion acquisition of SRS Distribution, focused on roofing, landscaping, and pool construction. GMS operates as a subsidiary of SRS and an indirect subsidiary of the parent. Together, network spans categories and aligns bids and delivery windows so teams waste less time chasing parts.
CEO Ted Decker framed the goal simply: serve pros across the project. Cross-selling works when gypsum, steel, roofing, and outdoor lines share logistics, credit, and scheduling. One account coordinates multiple drops, reduces callbacks, and keeps subs on schedule, which lifts close rates and strengthens relationships translating into repeat business.
What Pro customers can expect now
Pros care about reliability, speed, and total job cost because idle crews burn money. Expanded distribution gives more local options, so teams choose nearby yards and stick to tight timelines. Better fill rates, steady delivery slots, and will-call pickups reduce downtime and keep projects moving while households decide timing.
Leaders emphasized that customers defer, not cancel, which keeps demand alive. When households move, capacity must be ready to convert quotes into orders without friction. With GMS and SRS aligned, Home Depot builds readiness into the network so pros see inventory, delivery windows, and dependable credit choices that support scheduling.
While big jobs wait, smaller purchases continue and shape merchandising. Stock-and-flow items like adhesives, fasteners, and patching supplies stay essential because crews finish punch lists. A wider pro catalog and smoother fulfillment nudge smaller tickets higher, supporting margins while big jobs queue and helping keep productivity stable overall.
What the Home Depot–GMS tie-up changes
Scale changes bargaining power and assortment because connected channels simplify sourcing. With SRS categories combined with GMS gypsum and steel, pros source framing, wallboard, ceilings, and roofing through one system. Planned loads, routed trucks, and deliveries reduce coordination risk, limiting job-site delays and protecting margins when schedules feel tight.
Numbers frame urgency: comps up 1.4%, visits down 2.6%, mortgages above 6% since 2022. In July, existing-home sales rose 2% over June, inventory rose 0.6%, and the median price reached $422,400. Tariffs complicate pricing, so adjustments stay modest and targeted, helping contractors keep bids predictable.
Bastick said over half of products are sourced domestically, which avoids tariff swings. Where imported goods face higher rates than in May, price moves will be measured rather than broad. Predictable costs help pros plan bids with less padding, so homeowners see cleaner numbers and feel comfortable green-lighting work.
Sharper execution when demand returns
Leadership keeps preparation front and center so the turn feels smooth. Prices will rise only where necessary as tariff exposure hits specific goods, while domestic share buffers rest. Clear playbooks help pros plan bids without padding each line, which preserves trust and positions crews to move quickly when conditions improve.
Operational improvements matter while rates stay high because friction steals time. Faster quotes, inventory visibility, and delivery windows support phased work, such as roofing and walls later. Buy-online, pick-up-in-store complements job-site delivery, shortening timelines and keeping crews efficient when homeowners wait for financing to align.
Foot traffic may lag, yet omnichannel strength offsets part of the hit. Pickup pairs with job-site delivery to reduce cycle time and keep crews sequenced. With a broader catalog and a bigger network, Home Depot matches the right product to right site quickly, turning hesitant homeowners into scheduled installs.
Final clarity on what matters for hesitant renovators
Big projects feel possible again when credit loosens, delivery stays reliable, and pricing remains sensible. Expanded distribution, sharper pro support, and selective price actions position Home Depot to meet demand the moment households act. Because projects were deferred rather than canceled, readiness becomes a competitive edge, and consistent execution builds trust. Logistics, inventory, and service will decide whether shoppers return, so steady follow-through turns acquisitions into daily reasons to buy and recommend.