Freedonia Analyst Weighs In On Home Depot’s acquisition of HD Supply

Home Depot, the nation’s leading retailer of building and construction materials, announced today that it was purchasing HD Supply, one of the US’ leading retailers of products used in the maintenance, repair, and operations (MRO) of commercial buildings and multifamily housing complexes. The transaction, which is expected to be completed early in 2021, will reunite HD Supply – a former business unit of Home Depot – with its original corporate parent.

 According to Freedonia Group industry analyst Matt Zielenski, “This transaction will bolster Home Depot’s presence in the rapidly growing MRO marketplace, as HD Supply is a leading provider of a wide range of used in commercial properties. For instance, the COVID-19 pandemic has caused demand for cleaning and disinfecting supplies to surge, as building owners and managers work to make sure their properties are safe for use. HD Supply offers a full range of these products, from cleaning chemicals to wipes and janitorial equipment.”

Home Depot will also benefit by integrating HD Supply’s product offering and customer networks into its own extensive online sales and distribution programs. This will further boost Home Depot’s sales, as HD supply offers a number of products that are not part of Home Depot’s current offerings.

Noted Zielenski: “Not only are companies looking to buy more products online, but they are also looking to streamline the process by using firms that can act as ‘one-stop shopping.’ Home Depot can benefit from this, as HD Supply offers a number of products – such as food service disposables, restaurant and hospitality supplies, and fitness equipment – that will serve as additions to Home Depot’s already extensive lines of building materials, construction supplies, and other related products.”

For more information on the outlook for building materials and MRO supplies, see the following pages on the Freedonia Group website:

Construction & Building Products

Consumer Goods