Home Depot going out of business is a question many people are asking after hearing news about store and facility closures. These updates have created confusion among customers and investors. Some believe the company might be shutting down completely, while others think it’s just a temporary change. In reality, large companies often close certain locations as part of their business strategy. In this article, we will explain the real situation behind The Home Depot and what it means for customers, while also noting that, like Home Depot, Hobby Lobby is a large arts and crafts retailer in the US.
The Home Depot: Business Timeline (1978–2026)
The Home Depot is the world’s largest home improvement retailer, revolutionizing the industry with its “big-box” warehouse concept and DIY-focused service.
Key Strategic Milestones
- 1978 (Founding): Bernie Marcus and Arthur Blank incorporated the company in Delaware after being fired from Handy Dan Home Improvement Centers.
- 1979 (First Stores): The first two stores opened on June 22 in Atlanta, Georgia, featuring 60,000-square-foot warehouses that dwarfed competitors.
- 1981 (Going Public): The company launched its IPO on the NASDAQ, raising $4.1 million, and expanded outside Georgia into Florida.
- 1989 (Market Leadership): Home Depot became the largest home improvement retailer in the U.S., surpassing its rival, Lowe’s.
- 1994 (International Expansion): Entered the Canadian market by acquiring a 75% stake in Aikenhead’s Hardware.
- 2001 (Mexico Entry): Expanded into Mexico with the acquisition of Total Home.
- 2017 (Revenue Milestone): Annual sales surpassed $100 billion for the first time.
- 2020–2023 (Pandemic Surge): Experienced massive growth due to the home improvement boom, reaching $153.7 billion in revenue by fiscal 2023.
- 2024–2025 (Strategic Growth): Acquired SRS Distribution ($18.25B) and GMS Inc. to strengthen its “Pro” (professional contractor) segment.
- 2026 (Modern Status): Reported record fiscal 2025 sales of $164.7 billion and announced a 110-store expansion plan to maintain global dominance.
Home Depot Going Out of Business: What’s the Real Truth?
Reports of Home Depot going out of business are completely false. The company is still the world’s largest home improvement retailer and made a record $164.7 billion in revenue in fiscal 2025. Instead of shutting down, Home Depot has announced plans to open 12 new stores across the United States in 2026. It also recently completed a huge $18.25 billion deal to acquire SRS Distribution to support its future growth. Like Home Depot, Design Toscano, a home decor store, has also faced closures and business challenges recently.
Although the company is dealing with a slow (“frozen”) housing market and expects careful sales growth, it is still in a very strong financial position. With $14.2 billion in net earnings and regular increases in dividends, Home Depot remains stable and far from going out of business.
Overview of The Home Depot
The Home Depot was started in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia, after they lost their jobs at a hardware store and decided to build their own “one-stop shop” for DIY customers. It began with just two warehouse-style stores in 1979, and quickly changed the retail industry by offering a wide range of products along with helpful advice, eventually growing into the world’s largest home improvement retailer.
In 2026, Home Depot is still very strong financially, earning a record $164.7 billion in revenue, and plans to open 15 new stores this year while also focusing more on professional contractors to stay ahead in the market.
Why Are People Saying Home Depot Is Closing?
Recent “closing” rumors are mostly coming from Reddit posts and news about the permanent shutdown of a few large distribution centers and a related facility in Tennessee, not actual retail stores.
At the same time, confusion on social media increased after a 2026 company restructuring that included around 800 to 1,000 corporate layoffs and a strict five-day return-to-office rule, which some people took the wrong way as a sign the company was failing.
In reality, Home Depot is still making strong profits with $164.7 billion in revenue and is actually growing by opening around 12 to 15 new stores across the United States during 2026.
Recent Store and Facility Closures Explained
As of early 2026, Home Depot has permanently closed some distribution facilities in Mexico, Missouri, and La Vergne, Tennessee, to make its delivery system more efficient and faster, especially for professional contractors.
These planned closures, along with around 800 corporate layoffs in its Atlanta technology team, are part of a bigger plan to simplify operations and shift resources toward a more flexible, AI-based supply chain. While these back-end facilities are being improved, there are no plans to close retail stores across the country; instead, the company is growing by opening 12 to 15 new stores across the U.S. this year.
Is Home Depot Facing Financial Problems?
Home Depot’s strong financial position can be seen in its 1.3% dividend increase to $9.32 per share, making it the 156th quarter in a row that the company has paid cash to its shareholders as of March 2026.
Although the company now has about $55 billion in debt, this is a planned move to support big deals like SRS Distribution and GMS Inc., with the goal of leading the $1 trillion professional contractor market. Even though its net profit margin has slightly dropped to 8.6% due to high interest rates, analysts still give it a “Moderate Buy” rating with price targets reaching up to $416, showing strong confidence in its recovery plan for 2027.
| Financial Indicator | March 2026 Status | Investor Takeaway |
| Annual Dividend | $9.32 / share | Reflects surplus cash and commitment to shareholders. |
| Consensus Rating | “Moderate Buy” | Wall Street experts do not see a “collapse” coming. |
| Profit Margin | 8.6% (Net) | Stable performance despite a “frozen” housing market. |
| Strategic Debt | $55 Billion | Used for growth-focused acquisitions, not operational loss. |
| Price Target | $416.00 | Analysts expect the stock to grow significantly this year. |
How Many Home Depot Stores Are Still Open?
As of 2026, The Home Depot remains the world’s largest home improvement retailer with 2,359 retail stores currently operational across North America. Far from closing, the company is actively expanding, having opened 12 new stores in the past year and announcing plans for 15 additional locations throughout 2026.
| Country | Number of Stores | 2026 Status |
| United States | 2,035 | Expanding (12+ new sites planned) |
| Canada | 182 | Stable (Focusing on digital “Pro” hubs) |
| Mexico | 142 | Growing (2 new openings in early 2026) |
| Total Global | 2,359 | Active Expansion Mode |
Difference Between Temporary and Permanent Closures
In the retail world of 2026, temporary closures at Home Depot usually mean short-term shutdowns for store upgrades, storm damage repairs, or changes like turning a location into a “Pro-hub,” after which the store reopens for customers.
On the other hand, permanent closures mean a place is fully shut down and will not reopen, such as the recently closed smaller distribution centers in Tennessee and Missouri. While the number of retail stores is actually increasing by about 15 new locations this year, closing older and smaller warehouses is a planned step to move inventory into bigger and more efficient regional centers.
What the Company Says About Closure Rumors?
Home Depot’s leadership has clearly said that store closure rumors are not true, explaining that recent changes are part of a plan to make the company more efficient, not a sign of failure. In a January 2026 memo, CEO Ted Decker said that while the company is combining some back-end roles and closing a few distribution facilities, it is still focused on growth and plans to open 15 new retail stores this year. By raising its quarterly dividend to $2.33 per share, the company has also shown that its financial position is strong, and it is focused on growing in a $1.1 trillion market rather than stepping back from retail.
| Source | Official Stance / Action | Strategic Goal |
| CEO Ted Decker | “Essential to simplify our business and focus energy on priorities.” | Increasing speed and connection with frontline workers. |
| CFO Richard McPhail | “We believe pressures in housing will correct… we expect to grow.” | Preparing for a market recovery in late 2026/2027. |
| Board of Directors | Approved a 1.3% dividend increase in Feb 2026. | Demonstrating strong cash flow and investor confidence. |
| PR Spokesperson | Confirmed 800 tech layoffs were for “greater agility.” | Removing corporate layers to support stores better. |
| 2026 Guidance | Forecasting total sales growth of 2.5% to 4.5%. | Proving that the business is expanding, not shrinking. |
Customer Reactions and Online Discussions
Online discussions in early 2026 show that people are both confused and frustrated, with many Reddit users talking about whether company changes and the sudden layoff of 800 employees mean stores will get worse or customer service will drop.
Some shoppers on social media are worried about fewer staff in stores and higher prices for expensive items, while others support the brand and say focusing more on professional contractors makes sense in a high interest rate environment.
In the end, the viral rumors about a “total shutdown” are being proven wrong by informed users who point to the company’s $164.7 billion revenue and ongoing expansion as proof that it will stay strong in the long run.
My Research About The Home Depot
As you know, I am the Assistant Professor of Management and Entrepreneurship, and I share business updates on Bizlixo. My research on The Home Depot shows that it continues to be the world’s largest home improvement retailer, with $164.7 billion in revenue in 2026.
The company is expanding by opening 12 to 15 new stores while focusing on professional contractors to strengthen its market position. Despite some corporate layoffs and distribution center closures, Home Depot remains financially strong and committed to long-term growth.
Final Remarks
In conclusion, the rumors about Home Depot going out of business are not true. While the company may close certain stores or facilities as part of its strategy, it continues to operate successfully on a large scale. The Home Depot remains one of the biggest home improvement retailers in the world. Customers can continue shopping with confidence as the company adapts to changing market conditions, just as other major retailers like Ross continue to adjust their strategies to stay competitive.
FAQs
Is Home Depot going out of business in 2026?
No, The Home Depot is not going out of business and continues to operate thousands of stores worldwide.
Why are some Home Depot locations closing?
Closures are usually part of business strategy, such as shutting down underperforming locations or facilities.
How many Home Depot stores are currently open?
The company operates over 2,000 stores across North America.
Are Home Depot closures temporary or permanent?
Some closures are temporary (holidays or renovations), while others may be permanent based on company decisions.
