Pro Customers drive growth strategies at home improvement retailers amid challenging U.S. housing market

Published on June 11, 2026 Time: loading...

Man wearing a cap and green jacket holds a long wooden plank in a lumber aisle, smiling at the camera.

The professional contractor segment continues to play a critical role in the performance of the U.S. home improvement retail sector as major retailers intensify efforts to strengthen relationships with builders, remodelers, and trade professionals.

Despite ongoing challenges in the residential housing market, leading home improvement chains are reporting that their strongest business performance is being generated by professional customers rather than do-it-yourself consumers. Industry executives have indicated that market conditions remain difficult, but investment in contractor-focused initiatives continues to accelerate.

The broader housing sector remains under pressure. Elevated interest rates, affordability concerns, and reduced housing turnover have limited spending on large-scale residential improvement projects. As a result, many homeowners are delaying significant renovations.

Smaller projects continue to move forward. Major remodeling work often does not.

Industry leaders have acknowledged that current market conditions remain among the most challenging seen since the global financial crisis. Consumer uncertainty has continued to affect purchasing behavior across many home improvement categories.

Professional customers, however, have demonstrated greater resilience.

Contractors and builders remain active. Project pipelines continue to support demand.

This trend has reinforced the importance of the professional segment within the home improvement retail industry. While professional buyers represent a relatively small share of total customers, they contribute a disproportionately large percentage of revenue.

According to company disclosures, professional customers account for approximately 3% to 10% of the customer base at one major retailer while generating between 50% and 55% of total sales revenue. At another major competitor, the professional segment contributes roughly 30% of overall revenue.

These figures highlight the strategic value of contractor-focused business.

Significant investments have been made to strengthen professional services. New loyalty programs, enhanced delivery capabilities, and specialized account management solutions have been introduced. In addition, acquisitions of building supply businesses have been completed to improve service levels for contractors and builders.

The strategy is designed to capture greater market share within the professional construction segment.

Recent quarterly results reflected mixed performance across merchandise categories.

One major retailer reported sales growth in nine of its sixteen merchandising divisions. However, several wood-related categories, including lumber, flooring, building materials, and millwork, did not participate in the gains.

Average transaction values increased by 2.2%. At the same time, comparable transaction counts declined by 1.3%.

Company leadership stated that underlying demand remained generally consistent with trends experienced throughout the previous fiscal year. Consumer caution was observed across several spending categories due to housing affordability challenges and broader economic uncertainty.

Another major retailer reported a similar pattern.

Millwork was among the stronger-performing categories. However, lumber and flooring products did not experience comparable growth. Average ticket values increased by 1.5%, while comparable transaction volumes decreased by 0.9%.

The results suggest that customers continue to spend more per visit even as store traffic remains under pressure.

DIY demand remains subdued.

Large renovation projects are frequently being postponed. Kitchen remodels, flooring replacements, and major exterior upgrades have been particularly affected. Many homeowners continue to prioritize essential repairs over discretionary improvements.

Smaller maintenance projects remain more common.

Tasks such as painting rooms or replacing fixtures continue to support retail activity. However, these projects typically generate lower spending levels than full-scale renovations.

Professional contractors have become increasingly important under these conditions.

The contractor market benefits from ongoing repair work, commercial projects, and contracted residential improvements. This customer group is generally less sensitive to short-term consumer sentiment and often operates under longer project timelines.

As a result, growth opportunities continue to be identified within the professional segment.

Retailers remain optimistic about future performance despite current market headwinds. Comparable store sales are expected to remain relatively stable throughout the year, with forecasts generally ranging from flat performance to low single-digit growth.

Revenue expectations differ somewhat between major industry participants.

One retailer has projected annual sales growth of between 2.5% and 4.5%. Another has forecast significantly stronger gains, anticipating revenue growth in the range of 7% to 9%.

Much of that anticipated growth is expected to come from professional customers.

Industry observers note that contractor-focused strategies are likely to remain a central component of competitive positioning across the home improvement sector. Investments in specialized services, supply chain capabilities, and professional support programs are expected to continue as retailers seek to strengthen relationships with trade customers.

While the U.S. housing market faces ongoing challenges, professional contractors are providing an important source of stability. Their continued activity is helping sustain sales performance and shaping future growth strategies throughout the home improvement retail industry.