Where does Home Depot make most of its money? After reading this post, you will be surprised to know how this multi-billion dollar company makes their money. We have outlined all the necessary information that will help you.
Home Depot has maintained a top spot in its niche of business since its establishment.
And this multi-billion dollar company has continued to flourish competing with other top companies.
But, you might be wondering how do there make much money over the years, especially when there is more focus on a particular business line.
Where Does Home Depot Make Most of its Money?
Home Depot makes money through different sources, but its main stream of income is outlined here;
Retail sales and services are marked as one of the main primary sources of income for Home Depot.
It is recorded that almost 90% of the company’s revenue comes from retail sales, which is the primary source of their income.
Home depot retails products such as outdoor living equipment, tools, lumber and plumbing supplies
Home Depot also generates cash through its services revenue.
They offer services like repairs, installations and maintenance.
These services include flooring installation, HVAC installation and flooring installation. Around 8% of Home Depot’s income comes from services.
Professional sales is another important source of income for Home Depot.
This revenue is targeted at professional contractors and other top business tycoons.
In 2020, pro sales made up to 45% of Home Depot’s overall revenues.
It is believed that these clients are more profitable than retail customers because they buy in bulk and need deliveries to job sites.
Home Depot really invested in e-commerce infrastructure in recent years, enabling customers to buy and place orders online for a variety of goods and services.
In 2020, it is recorded that 15% of all sales at Home Depot will be made online since it became another source of income for the company.
The company also made investments in a smartphone app, which enables users to shop, follow orders, and access services.
This multi-million dollar company makes about 5% of its revenue from its abroad locations.
It has a wide range of revenue sources, but retail and pro sales happen to be the company’s most generated source of income.
Home Depot has kept its status as a top home improvement store in the US and abroad because of its exclusive service to its client.
These services include customer care, logistics, and e-commerce.