Home Depot, Walmart Bet Big on Services

0:00It's March 27. DIRM news today starts now, AI-powered and ready. Retailers like Home Depot and Walmart are increasingly turning to services for bigger profits than selling products alone. Home Depot subsidiary just agreed to buy mingle doors, a top wholesaler of heating, ventilation and air conditioning gear across five southeastern states. This move strengthens Home Depot's support for professional installers and opens doors to a $100 billion market. Meanwhile, Walmart's finance chief expects services to drive more profit than goods within five years. Consumers and experts note the shift amid a tough housing market where building supply sales dropped 4% or more over summer months. Still, Home Depot beat expectations with sales of 3.2% to $164.7 billion last fiscal year. Analysts at Telsi Advisory see the service focus buys fueling long-term earnings growth for Home Depot. Those reports high single-digit gains in home services, even as big-home projects slow.

1:05As chains like these lean into higher margin services, they're positioning for steadier gains no matter the economy.