Home Depot Strikes Again

The Wall Street Journal reported that Home Depot is Acquiring Hughes Supply. This is particularly interesting when you look at their history of acquisitions. In 2004 they acquired White Cap moving then into the Contractor Supply business. This was followed by Lakeside Contractors Supply, Williams Brothers Lumber, National Waterworks and now Hughes Supply. It seems obvious to me that this is an effort to capitalize on and further enhance their incredible purchasing power. Manufacturers Beware! This is not a good thing for you and will result in even greater price pressure.
On the other hand, if we look back at the early battles between Depot and Lowes, we remember that Lowes profitability was not as strong as that of Home Depot primarily because of the higher percentage of business done with Contractors.
Could this be history repeating itself? Home Depot growth has slowed so the company decides to diversify into the Contractor Supply Business. Might this mean a little less focus on the core business and could it eventually provide an opportunity for an entrepreneur with a more concentrated focus emerge as the next big thing in Hardware Marketing?