Core Viewpoint - Home Depot is strategically expanding its presence in the professional contractor market through acquisitions, aiming to sustain growth amid challenges in the DIY segment [2][4]. Group 1: Acquisition Strategy - Home Depot announced the acquisition of GMS for approximately $4.3 billion, indicating a strong push into the professional contractor market [2]. - GMS operates a vast network of around 320 distribution centers and offers products like gypsum wallboard and ceiling materials, which are key to Home Depot's strategy [2][3]. - This acquisition follows Home Depot's previous $18 billion purchase of SRS Distribution, marking a significant shift towards capturing larger orders from professional clients [2][4]. Group 2: Market Position and Growth - Home Depot's sales growth in the U.S. for stores open for at least a year was only 0.2% in the first quarter, highlighting the need for a strategic shift [4]. - The company aims to diversify its customer base beyond DIY consumers to include professionals handling complex projects, such as pool installations and roof repairs [4][5]. - Home Depot's sales reached $159.5 billion last year, nearly double that of ten years ago, showcasing the effectiveness of its acquisition strategy [5]. Group 3: Comparison with Competitors - Home Depot's acquisition strategy contrasts with other retailers like Lowe's, which have faced challenges and losses from their acquisitions [6][7]. - Approximately 70% of mergers and acquisitions fail, but Home Depot's careful approach has yielded significant long-term benefits, setting a standard for other large companies [7].