Home Depot Invests MX$690 Million in Los Cabos

Summary: The Home Depot México is expanding in Baja California Sur with a MX690 million investment in its first San Jose del Cabo store, increasing its state investment and national network to 144 locations. The expansion highlights growing demand from tourism, residential construction and infrastructure while supporting Mexican supplier development, employment, logistics and technology investments as the retailer targets more than 160 stores nationwide. 

The Home Depot México has expanded its footprint in Baja California Sur with a MX$690 million investment in its first store in San Jose del Cabo, strengthening the retailer’s presence in one of Mexico’s key tourism and construction markets. The opening marks the company’s third store in the state and brings its national network to 144 locations. The new store will generate 95 direct jobs, adding to the 200 positions.

The investment also increases The Home Depot México’s cumulative investment in Baja California Sur to MX$954 million. The retailer already operates stores in Los Cabos and La Paz and said the new location will allow it to serve customers in San José del Cabo and surrounding communities more closely. 

New Store Expands Los Cabos Retail Capacity

The San José del Cabo opening comes as the municipality continues to attract residential, tourism and infrastructure development, creating demand for construction, renovation, maintenance and home improvement products.

The new store offers more than 50,000 products and services for homeowners, construction professionals and businesses. Its location is intended to provide customers in the Los Cabos area with greater access to materials and supplies while supporting the region's expanding development activity.

Pepe Rodríguez, president and CEO of The Home Depot Mexico, said San Jose del Cabo reflects the company's strategy of expanding closer to customers while growing alongside the communities where it operates.

The executive also highlighted employment generation and the development of Mexican suppliers as part of the company's broader expansion strategy. More than 80% of The Home Depot's suppliers are Mexican, while approximately one in 10 exports products to the company's stores in the United States and Canada.

The retailer said it will continue incorporating local suppliers in Baja California Sur that meet its quality and production-capacity requirements. 

Mexico Expansion Supports Supplier Growth

The company's supplier strategy gives its Mexican expansion implications beyond the retail sector, particularly as manufacturers increasingly seek to integrate into domestic and North American supply chains.

The Home Depot has previously outlined plans to increase its use of Mexican-made products, alongside investments in stores, logistics and technology. In 2025, the company announced a multiyear investment of more than US$1.3 billion in Mexico through 2030, with plans to expand its store network, strengthen e-commerce and logistics capabilities and increase local sourcing, reported MBN. 

The company has said it aims to reach 100% national sourcing by 2028, compared with 85% of products sourced from Mexican suppliers when the multiyear investment plan was announced.

The strategy connects The Home Depot's physical expansion with efforts to strengthen its Mexican supply base and improve the availability of locally produced goods throughout its North American network. 

Retailer Targets More Than 160 Stores

The San José del Cabo store is part of The Home Depot México's MX$4.8 billion investment plan for 2026, which includes additional store openings and operational improvements.

The company is pursuing a longer-term strategy backed by more than US$1.3 billion in investment to expand its Mexican network beyond 160 stores. The 2026 capital plan follows a period of continued expansion in which the retailer has combined new locations with investments in technology and customer-facing capabilities.

Technology is also becoming a larger component of the company's growth strategy. The Home Depot has said it is deploying artificial intelligence to analyze variables including weather conditions, product relationships and consumption trends. The system is intended to improve demand forecasting, reduce forecasting errors and optimize safety-stock levels.

The retailer's investments therefore extend beyond additional retail space, with technology and supply-chain efficiency becoming increasingly important as it expands its national footprint. 

Community Investment Accompanies Expansion

The company's growth in Baja California Sur also includes social initiatives. Since entering the state in 2005, The Home Depot México reports that it has participated in more than 138 volunteer activities and collaborated with 130 social organizations.

The retailer has also allocated more than MX$22 million in donations of products, materials and financial resources, benefiting more than 1 million people in the state.

At the national level, community initiatives form part of the company's broader expansion strategy. Its 2026 investment plan includes support for the construction and improvement of more than 300 homes in vulnerable communities and the rehabilitation of 100 soccer fields, reported MBN. 

With the San José del Cabo opening, The Home Depot is combining physical expansion, supplier development, technology investments and community programs as it works toward a larger national retail network. The new store also positions the company to capture demand generated by continued residential, tourism and infrastructure development in Los Cabos.