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hey builders & dreamers,

ever notice how every time you need to fix something at home, you end up making multiple trips to home depot? turns out, that's not just you being forgetful…

it's actually part of their genius business model.

home depot is a name that’s pretty much synonymous with home improvement, but what really sets them apart is how they’re laser-focused on solving problems for their customers. i’m not talking about just selling hammers and nails—i’m talking about making life easier for everyone, from weekend warriors to full-time pros.

surprising store stats

before diving into their strategy, let’s get to know home depot by their numbers:

• annual revenue of +$150B

• employee +500K associates

• operate 2,340 stores in the us, can, & mexico

• stock about 35K products in-store (& 1M+ online)

• stores average 105K sq ft (that's like 2 football fields!)

• the average home depot store does more than $1M+ per week 🤯 

• the home depot foundation invested +$0.5B in veteran causes

• ~90% of the us population lives within 10 miles of a home depot

problems = profits

since opening in 1978, home depot’s founders, bernie marcus & arthur blank, had one goal: be the go-to problem-solver for all things home improvement.

they nailed it (pun fully intended).

home depot isn’t just about selling products—it’s about solving problems.

their aisles aren’t just packed with supplies — they’re packed with answers.

their layouts aren’t just by categories — they’re complete projects & solutions.

their staff doesn’t just greet you — they ask “what project are you working on?”

this problem-first mindset is everything for home depot. offering guidance, expertise, & hands-on help grew them into a +$150B retail powerhouse.

takeaway: don’t just sell resources, be a resource.

perks for pros

while the everyday DIY-er keeps home depot's aisles buzzing, the real MVPs are the pros — contractors, electricians, plumbers — who practically live there.

these pros are just 10% of customers,
but account for a whopping 50% of sales.
(pros only account for 25% of sales at lowe’s)

so home depot treats these pros like royalty: dedicated services, bulk pricing, favorable financing, rental programs, same-day delivery, special parking, & loyalty program perks like faster checkout. they even have "pro associates" who've actually worked in the trades available to answer questions. because nothing kills credibility faster than getting DIY advice from someone who doesn’t own a screwdriver (like me).

home depot knows time is money for the pros,
so they help them get back on the job faster.

takeaway: if you can identify your high-value customers, double down on serving them. create experiences specific to their needs.

apron army

most retailers talk about customer service, but home depot lives it with their inverted pyramid model: customers on top, followed by frontline associates. i know, seems like a no brainer. but most retailers treat their associates as replaceable, so this is rare.

home depot empowers their staff in a big ways:

• associates can approve up to $50 in discounts on the spot, supervisors up to $100, assistant managers up to $500, & store managers up to $1,0000.

• store managers have real autonomy to serve local needs.

• 90% of store managers started as hourly associates.

• bi-annual cash success sharing is available to ALL employees.

• extensive training programs (fun fact: they're one of the largest trainers of trade skills in america)

takeaway: in the words of bernie marcus himself, “take care of the associates. they will take care of customers. & everything else will take care of itself.”

next time you're wandering those orange aisles, remember: you're not just in a store, you're in a solutions factory. ask for advice, chat with a pro. because here, solving problems is the shopping experience, & that’s retail at its smartest.

big believer that solving is the best kind of shopping.

p.s. love this newsletter? show your support by clicking the link below for another big orange brand — hubspot! they’re all about solutions too, especially for ai👇

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