Remembering Bernie Marcus’s Invention of the Modern DIY Retailer

The passing of the legendary co-founder of Home Depot earlier this month reminded the industry of his role in creating the biggest retailer in home improvement.

When Bernie Marcus and Arthur Blank were fired from the long-since-forgotten Handy Dan home improvement chain, it started a process that led to the creation of a $150 billion retail empire that now defines the industry. And in its wake, Home Depot left a trail of local and regional players who fell by the wayside, leaving only Lowe’s as a true national competitor.

Marcus’s impact on the industry has been extraordinary. If you’ve been in the home improvement industry for less than 30 or 40 years you might not know what most retailers back then looked like. They were significantly smaller – perhaps 20,000 or 30,000 square feet – and had modest assortments accordingly. Chains that had 50 or 100 locations were considered giants.

But Home Depot, under the leadership of Marcus and Blank – the former was the CEO and merchandising part of the equation while the latter specialized in operations and finance – forever changed the retail landscape for consumers, employees and the suppliers of lumber and other materials it carried.

Most obviously, the stores are much, much larger: 80,000 or 100,000 square feet with enormous parking lots often dotted with fork lifts, flatbed shopping carts and endless rows of Ford F150s and Chevy Silverados.

Inside, the assortments were just as enormous, with seemingly every imaginable tool, fastening device, lumber component and widget a do-it-yourselfer would ever need. Employees – they were really the first to call them associates – were often ex-tradesmen who know how all those things actually worked to get jobs done and they offered their skills as well as salesmanship to shoppers. The orange aprons were a nice touch too.

But over the years, Home Depot has also grown its pro-business to the point that with only a small percentage of customers coming from the contract side they now represent its largest revenue generator. Separate distribution centers and other services specifically geared towards the pro builder have made them a go-to resource for the trade. Bernie Marcus retired more than 20 years – Blank followed him several years later after taking over as CEO – but his legacy lives on in the 2,000 Home Depot stores in America and around the world.

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