The Home Depot Invests MX$500 Million in Edomex Expansion

Summary: The Home Depot México’s nearly MX$500 million investment in Lerma, State of Mexico, expands the retailer’s store network while strengthening the logistics, sourcing and talent infrastructure supporting its long-term growth in Mexico. The project reflects a broader strategy to surpass 160 stores by 2030, increase Mexican sourcing and integrate domestic suppliers into a more connected North American retail supply chain. 

The Home Depot México will invest nearly MX$500 million to build a new store in Lerma, State of Mexico, expanding its retail footprint while adding about 100 jobs and reinforcing the logistics and supply-chain infrastructure supporting its operations in the state.

The project will bring the retailer’s number of stores in the State of Mexico to 17 and increase its workforce in the state to more than 1,700 employees. The investment was announced at The Home Depot’s logistics hub in Tlalnepantla, which supports part of the company’s sourcing and distribution activities in the region.

The expansion comes as The Home Depot pursues a broader strategy in Mexico that combines new stores with investments in logistics, technology and domestic sourcing. The company announced in 2025 a multiyear investment of more than US$1.3 billion in Mexico through 2030, targeting a network of more than 160 stores and greater use of Mexican-made products, reported MBN.  

New Store Targets Mexico’s Construction Market

The Lerma project will add retail capacity in a state with a large concentration of businesses serving construction, maintenance and home improvement demand. According to the State of Mexico’s Ministry of Economic Development, more than 35,000 economic units in the state are dedicated to the retail sale of hardware, glass, construction materials and related products.

Together, these businesses generate more than 76,000 jobs, highlighting the importance of the sector to the state’s commercial economy. The Home Depot’s expansion therefore places the new store within an established market supported by residential construction, renovation, maintenance and other building-related activities.

Laura González, Minister of Economic Development of the State of Mexico, said the state government is working with companies on regulatory improvements, legal certainty, talent availability and connections with local suppliers.

Those priorities are relevant to The Home Depot’s expansion because the retailer’s strategy extends beyond opening stores. Its Mexican operations increasingly connect retail locations with domestic manufacturers and suppliers that can support demand across the company’s network. 

Local Suppliers Gain From Retail Expansion

The company’s growth in Mexico has created opportunities for manufacturers seeking to enter or expand within large-scale retail supply chains. More than 80% of The Home Depot’s suppliers are Mexican, and approximately one in 10 exports products to the company’s stores in the United States and Canada, reported MBN. 

The retailer has also said it plans to increase its use of nationally sourced products. When it announced its multiyear investment plan, the company reported that 85% of its products were sourced from Mexican suppliers and set a goal of reaching 100% national sourcing by 2028.

This strategy gives store expansion a wider supply-chain dimension. As The Home Depot adds locations, Mexican manufacturers can gain additional opportunities to supply products domestically while potentially integrating into the company’s North American distribution network.

The company’s recent expansion in Baja California Sur illustrates this approach. In San José del Cabo, The Home Depot invested MX$690 million in its first store in the municipality, bringing its presence in the state to three locations and its national network to 144 stores at the time of the opening. 

Logistics and Technology Support Growth

The Lerma investment also comes as The Home Depot continues strengthening the infrastructure behind its physical retail network. Its Tlalnepantla logistics hub supports sourcing and distribution in the State of Mexico, allowing the company to connect stores with inventory and suppliers as its footprint expands.

Logistics is increasingly complemented by technology as retailers seek to improve inventory management and respond more precisely to changing consumer demand. The Home Depot has been deploying artificial intelligence to analyze factors including weather conditions, product relationships and consumption trends.

The system is designed to improve demand forecasting, reduce forecasting errors and optimize safety-stock levels. For a retailer operating a growing network of stores, these capabilities can help align inventory with regional demand while limiting inefficiencies across the supply chain.

The company’s 2026 capital plan totals MX$4.8 billion and includes additional store openings and operational improvements. The plan forms part of its longer-term strategy to expand beyond 160 stores in Mexico. 

Expansion Creates Opportunities for Talent

The new Lerma location will also increase demand for workers in retail and related operations. With approximately 100 new positions expected, The Home Depot’s workforce in the State of Mexico will exceed 1,700 employees.

The expansion provides an opportunity for greater coordination between companies, educational institutions and government agencies as businesses seek workers with the skills required for increasingly integrated retail, logistics and supply-chain operations.

For the State of Mexico, strengthening those connections is part of a broader effort to increase the participation of local companies and workers in investment projects. For The Home Depot, access to talent and suppliers supports its objective of expanding closer to customers while improving the efficiency of its national network.