Home Depot’s HD Supply strategy and China expansion exposed limits of its adjacencies

In the early 2000s, Home Depot bought several companies and combined them into HD Supply, a professional-distribution business designed to serve contractors outside its physical-store footprint. The effort became a major distraction and was spun off; about a decade later, Home Depot bought back its most valuable part, which is now part of the business as the company considers expanding professional distribution.

Home Depot also opened more than a dozen stores in China—possibly dozens—but the international push was described as unsuccessful. The account attributed the difficulty to differences in DIY and home-improvement culture, newer buildings, wealthy consumers preferring city living, and customers often hiring others for the work.