The Home Depot
Growth strategy, Long-term growth
Our Inverted Pyramid model reminds us who matters most – our customers and our associates
Growth strategy
The Home Depot sold $164.7 billion in fiscal 2025 through 2,359 stores, more than 1,250 SRS locations, and online, with sales up 3.2% and comparable sales up 0.3%. It aims to grow faster than the market through three parts of its strategy: drive its core and culture, deliver a frictionless interconnected customer experience, and win with Pros, the professional builders and tradespeople it now also serves through SRS.
Drive our core and culture
Support associates so that they can deliver the best customer experience in home improvement.
- A1Associates’ toolsEquip store associates with hdPhones and Sidekick, which sends them to bays where product is low or out of stock.
- B2New storesOpen about 15 new stores in fiscal 2026, after 12 in fiscal 2025.,
- C3Product authorityStay the product authority in home improvement, with innovation, assortment, and everyday value.
18 March 2026Sales grew 3.2% in fiscal 2025, to $164.7 billion, mostly from SRS and GMS, while comparable sales rose 0.3%.
18 August 2026Second-quarter sales in fiscal 2026 rose 5.7%, to $47.9 billion, with comparable sales up 1.7%.
SRS doubled its sales in fiscal 2025, to $12.7 billion, after buying GMS
SRS, which Home Depot bought in June 2024, sells roofing, landscape, pool, and now interior building products to specialist trades. Sales in the stores’ three product lines barely changed, and the company’s comparable sales rose 0.3%.
Each stack is as tall as the year’s sales. SRS sales for fiscal 2024 run from its purchase in June 2024.
Put the order of spending in writing.
The Home Depot sets out its capital allocation as three principles in order: reinvest in the business first, then pay the dividend, then return what is left through share buybacks. After buying SRS, it paused buybacks from March 2024. We recommend writing down the order in which money is spent, so that a big decision shows at once what gives way.
Grow with the customer you are not yet serving.
Home Depot’s stores already served Pros, but SRS and GMS took it into roofing, landscaping, pools, and interior building products, and doubled the sales of that business in a year. We recommend asking which customers a company serves only partly, and what it would take to serve the whole of their work.
Keep the stores at the centre of online.
About half of Home Depot’s US online orders were fulfilled through a store in fiscal 2025, and it calls its stores the hub of the business. We recommend building online sales on the places a company already has, so that the two channels strengthen each other instead of competing for the same customer.
Sources
Headwater is not connected with The Home Depot, Inc. The Home Depot, SRS, GMS, Pro Xtra, Sidekick, and Magic Apron are trade marks of their owners. Updated 5 October 2026.