Home Depot is organised around one large retail business and a separate Pro distribution arm. Its US, Canada and Mexico stores are geographic operating segments that it reports together as the Primary segment; SRS Distribution, bought in fiscal 2024 and enlarged with GMS in fiscal 2025, runs four lines of business beside it. Central functions such as merchandising, supply chain and interconnected retail serve the whole store network, and the company describes its culture as an inverted pyramid with customers and associates at the top and senior management at the base.
The US, Canada and Mexico are separate geographic operating segments, aggregated into one reportable Primary segment. Of the 2,359 stores at 1 February 2026, 324 (13.7%) were in Canada and Mexico.
SRS serves roofers, landscapers, pool and drywall contractors. After the GMS deal it is organised as four lines of business: roofing and building products, interior and construction products, landscape, and pool. None is a reportable segment.
03
Shared central functions
Merchandising, supply chain, technology, interconnected retail and finance are run centrally by executive vice presidents and serve all stores, which is why a typical store can carry 30,000 to 40,000 items from one assortment system.
04
Culture as structure
Home Depot's annual report describes a servant-leadership model, the inverted pyramid, that puts customers and associates at the top and senior management at the base. It employed about 472,400 associates at the end of fiscal 2025.
What changed in 2025-26
SRS buys GMS
In fiscal 2025 SRS completed the acquisition of GMS, a distributor of drywall, ceilings, steel framing and related products, taking SRS to over 1,250 locations in the US and Canada and reorganising it into four lines of business.
An Office of Pro Acceleration
In July 2026 CFO Richard McPhail took on a new Office of Pro Acceleration to coordinate Home Depot Pro, HD Supply, SRS Distribution and Construction Resources, while other executives took on private brands and loyalty, credit and payments.
The CEO on medical leave
On 12 August 2026 Home Depot announced that Ted Decker would take a temporary medical leave. Ann-Marie Campbell oversees day-to-day operations, McPhail oversees finance and the Pro subsidiaries as interim principal executive officer, and lead director Gregory Brenneman chairs the board.
AI agents for customers and pros
Home Depot launched its Magic Apron generative AI tools in March 2025. In January 2026 it announced, with Google Cloud, agentic tools including an AI-powered materials list for pros and Gemini Enterprise for customer experience to support store and phone service.
Home Depot's units and what each does
Primary segment
What it coversHome Depot stores and online in the US, Canada and Mexico; 2,359 stores
What it coversCoordinates Home Depot Pro, HD Supply, SRS and Construction Resources
Source and period8-K, August 2026
Interconnected retail
What it coversOnline and app; online sales were 15.9% of net sales
Source and period10-K, fiscal 2025
Workforce
What it coversAbout 472,400 associates, about 53,400 salaried
Source and period10-K, end of fiscal 2025
What it means for you
Suppliers: assortment decisions are central, so the merchandising organisation, not individual stores, decides what gets on the shelf.
Pro-focused businesses: expect one coordinated Pro offer across Home Depot Pro, HD Supply and SRS rather than separate sales efforts.
Investors: read the Primary segment and SRS separately; their margins and growth drivers differ.
Operators: the inverted pyramid shows how a culture statement can work as a design rule for where support flows.
Retail builders: Home Depot puts AI first into finding products and building project lists, the tasks where store associates spend the most time.
The Business Engineer lens
Home Depot’s structure is shifting from a store chain with a website to a platform that serves two very different customers, the DIY shopper and the professional contractor. The Business Engineer’s view is that AI agents which plan projects and build material lists move value toward whoever owns the project data, which is why the Pro side now gets its own coordinating office.
A centralised retail business reported as one Primary segment (US, Canada and Mexico stores), plus the SRS Pro distribution arm with four lines of business, supported by central functions such as merchandising and supply chain.
What is Home Depot's inverted pyramid?
Its servant-leadership model: customers and associates sit at the top and senior management at the base, supporting them.
Who runs Home Depot?
Ted Decker is Chair, President and CEO. During his temporary medical leave announced in August 2026, Ann-Marie Campbell oversees operations and CFO Richard McPhail is interim principal executive officer.
How many employees does Home Depot have?
About 472,400 associates at the end of fiscal 2025, of whom about 53,400 were salaried.
Correction (10 Oct 2026): an earlier section on this page showed unsourced figures; it has been removed.
Home Depot utilizes a matrix organizational structure with some aspects of the divisional and functional structures. There are geographic divisions, with further sub-divisions for stores in the United States.
Home Depot features numerous functional groups that are headed by a Senior Vice President or Executive Vice President. Examples include Technology, Finance, Culture, Business Transformation & Product Management, and Supply Chain.
Home Depot also has a clear hierarchical chain of command with the CEO, Executive Leadership Team, Senior Leadership Team, and Board of Directors. At the store level, employees report to store managers who then report to regional managers in turn.
Department
Structure
Details
Advantages
Drawbacks
Retail Stores
Divisional
– Divisional structure with separate teams for each retail store location. Store managers oversee daily operations.
– Efficient management of individual store operations. – Quick response to local market needs and trends.
– Limited consistency in store operations between locations. – Potential challenges in maintaining a standardized brand image.
Merchandising
Functional
– Functional teams responsible for product selection, pricing, and inventory management. Functional managers lead these teams.
– Specialization in product assortment and pricing strategies. – Efficient inventory control and supply chain management.
– Potential misalignment between merchandising and regional store teams. – Challenges in adapting to local market preferences.
Supply Chain
Functional
– Functional teams handling logistics, transportation, and distribution. Functional managers oversee supply chain operations.
– Expertise in supply chain efficiency and cost management. – Effective inventory management and distribution.
– Potential disconnect between supply chain decisions and store-level needs. – Challenges in responding to sudden supply chain disruptions.
Online Retail
Matrix
– Cross-functional teams focusing on e-commerce operations. Team members report to both category and functional managers.
– Enhanced coordination between online retail and other functions. – Efficient management of e-commerce operations.
– Potential conflicts between category and functional managers. – Complex communication channels between teams.
Corporate Functions
Functional
– Functional departments for finance, HR, legal, and IT services. Functional managers oversee corporate functions.
– Specialization and expertise in corporate support services. – Efficient handling of financial, legal, and HR matters.
– Limited integration between corporate functions and retail store operations. – Potential misalignment with operational needs.
Regional Management
Divisional
– Divisional teams overseeing specific geographical regions . Regional managers lead these teams.
– Tailored strategies for regional markets. – Localized decision-making and adaptability.
– Potential conflicts between regions in resource allocation. – Challenges in maintaining a consistent brand image across regions.
Introduction
The Home Depot, Inc., is an American home improvement retail chain headquartered in Cobb County, Georgia. The company was founded in 1978 by Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah with a vision to provide exemplary customer service and give back to society.
Home Depot utilizes a matrix organizational structure with aspects of the divisional and functional structures. In the following sections, we will explain Home Depotโs combination approach in more detail.
U.S. Stores โ stores in the United States are further divided into three โsub-divisionsโ: Northern Division, Southern Division, and Western Division.
Mexico, and
Canada.
Both the Mexican and Canadian divisions are led by a company President, while the United States division is led by an Executive Vice President.
Functional groups
Like most other organizations of a similar size or nature, Home Depot also contains various functional groups that support specific business needs. These include:
Customer Experience.
International Operations.
Supply Chain.
Product Development.
Human Resources.
Merchandising.
Building Materials.
Outside Sales & Service.
Dรฉcor.
Technology.
Finance.
Culture.
Global Brand.
Business Transformation & Product Management.
Online & CMO.
Home Services & Sales Operations.
Each functional group is headed by a Senior Vice President or Executive Vice President.
Global hierarchy
Home Depotโs global hierarchy is far less prominent than its geographic divisions and functional groups. But it still deserves a mention.
At the store level, employees report to a store manager who then reports to a regional manager in turn. Home Depot is somewhat different from other retailers in that it places customers and employees (which the company calls “frontline associates”) at the top of an inverted pyramid.
By prioritizing these two groups, Home Deport believes the other levels in the pyramid will take care of themselves. These are Field Support, Corporate Support, and CEO.
At the global, corporate level, there is a clear chain of top-down command from the CEO with the following levels:
CEO โ at the time of writing, The Home Depot CEO and President is Ted Decker.
Overview of Home Depot’s Organizational Structure
Primary Functional Areas:
Store Operations
Merchandising
Supply Chain and Logistics
Marketing and Sales
Human Resources
Finance
Each functional area is managed centrally, with specialized teams dedicated to optimizing processes and supporting the company’s extensive store network.
Similarities: Both Home Depot and Lowe’s use a functional organizational structure that centralizes operations such as merchandising, store operations, and supply chain management to maximize efficiency across their store networks.
Differences: Lowe’s has recently been restructuring to become more agile, reducing some layers of management and increasing the autonomy of regional and store managers. Home Depot maintains a more centralized control, which can ensure consistency but may reduce flexibility in individual store decision-making.
Implications: Home Depotโs centralized approach can lead to consistent customer experiences across all locations, which is critical for maintaining brand integrity. However, Lowe’s more decentralized approach may allow it to respond more quickly to local market trends and customer needs.
Comparison with Walmart
Similarities: Like Home Depot, Walmart employs a functional organizational structure with strong central management overseeing various aspects of operations, including store operations, human resources, and logistics.
Differences: Walmartโs scale and scope are broader, incorporating a global strategy and a wider range of products, including groceries and apparel. This requires a more complex organizational setup to manage international operations and a diverse product range.
Implications: Walmart’s structure allows it to leverage its size and scale to achieve efficiencies and competitive pricing that are hard to match. Home Depotโs more focused approach allows it to specialize more deeply in home improvement, potentially providing greater expertise and service in this category.
Comparison with IKEA
Similarities: Both Home Depot and IKEA focus on optimizing store operations and customer service within their functional organizational structures.
Differences: IKEA has a unique organizational structure that includes a strong emphasis on product design and sustainability, integrated into its businessmodel. IKEAโs structure also supports its global reach with a variety of store formats and an extensive supply chain.
Implications: IKEAโs integration of design and sustainability into its organizational structure supports its brand identity and appeals to environmentally conscious consumers. Home Depotโs structure focuses on operational efficiency and may prioritize rapid delivery and availability, catering to a different consumer need.
Key Highlights about Home Depot’s Organizational Structure:
Matrix Organizational Structure:
Home Depot utilizes a matrix structure combining elements of divisional and functional structures.
This structure allows for a combination of flexibility and specialization to meet various business needs.
Geographic Divisions:
Home Depot is divided into three core geographic divisions: U.S. Stores, Mexico, and Canada.
Within the U.S. Stores division, there are sub-divisions: Northern, Southern, and Western Divisions.
Each division is led by an Executive Vice President or President.
Functional Groups:
Home Depot features numerous functional groups responsible for specific business functions.
Examples of functional groups include Technology, Finance, Supply Chain, Human Resources, and more.
Each functional group is headed by a Senior Vice President or Executive Vice President.
Global Hierarchy:
The organizational hierarchy is characterized by a clear chain of command.
At the store level, employees report to store managers, who report to regional managers.
The inverted pyramid places customers and employees at the top, followed by Field Support, Corporate Support, and CEO.
CEO and Executive Leadership:
The CEO, Ted Decker, leads the company.
The Executive Leadership Team comprises nine members, including Executive Vice Presidents responsible for functional areas.
Senior Leadership Team:
Board of Directors:
The Board provides oversight and strategic guidance to the company.
Company Philosophy:
Home Depot was founded with a vision of providing exceptional customer service and giving back to society.
Divisional Structure Detail:
Home Depot’s divisions are organized geographically with sub-divisions in the U.S. Stores division.
Mexico and Canada divisions have individual Presidents, while the U.S. division has an Executive Vice President.
Functional Group Detail:
Functional groups cover various aspects of the business, from Customer Experience and Supply Chain to Finance and Culture.
Inverted Pyramid Philosophy:
Home Depot prioritizes customers and employees, believing that by doing so, other aspects of the business will thrive.
Home Depot is leveraging AI to fundamentally restructure its workforce allocation and operational hierarchy through its “One Home Depot” initiative, which integrates artificial intelligence across store operations and supply chain management. A concrete example is the implementation of AI-powered inventory management systems that automatically predict demand patterns and optimize stock levels, reducing the need for traditional middle management roles in inventory oversight. This technology has enabled Home Depot to flatten its organizational structure by empowering frontline associates with AI-driven mobile devices that provide real-time inventory data, product location information, and customer service insights, effectively eliminating layers of supervisory positions previously required for these functions. The AI system processes millions of data points from sales history, seasonal trends, and local market conditions to make autonomous restocking decisions, allowing the company to shift from a hierarchical, human-dependent inventory management structure to a more agile, technology-enabled model where fewer managers can oversee larger operations with greater efficiency.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
The Business Engineer readThe New Organizational ArchitectureIn the updated Map of AI, we analyzed the six dimensions or the forces of the transformation weโre living through.Read on businessengineer.ai โ
