Home Depot is making a significant move to lure customers into its stores after recently seeing weak sales growth.
The home-improvement chain revealed in its most recent earnings report that its U.S. comparable sales increased 1.3% year over year in the second quarter of 2026.
Foot traffic in its stores also slipped during the quarter, as recent Placer.ai data revealed that average visits per Home Depot location declined 0.6% year over year.
“Consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects,” a trend that is impacting sales, Home Depot Chief Financial Officer Richard McPhail said on an earnings call in August.
“We have a lot of volatility,” he said. “We have unplanned cost pressure that is significant in the market, and we have frozen housing conditions. With all of that, we are focused on controlling what we can control.”
Home Depot announces new customer discounts ahead of Black Friday
As Home Depot faces significant headwinds, it has launched steep discounts and generous deals for the holiday shopping season.
The company has announced in a recent press release that its Black Friday Savings Event, which offers deals on home improvement essentials, major appliances, power tools, and holiday décor in stores and online, officially begins on Nov. 5 and ends on Nov. 25.
During the event, Home Depot is offering customers buy-one-get-one-free (BOGO) deals on select power tools. For instance, customers who purchase an eligible tool or battery kit from brands such as DEWALT, Milwaukee, and RYOBI can receive a select power tool for free.
The home-improvement chain is also offering significant discounts on major appliances.
For example, Home Depot states that customers can “save up to an extra $500 on qualifying refrigeration purchases of $2,498 or more, up to $300 on laundry purchases of $1,698 or more, up to $300 on cooking purchases of $1,498 or more and up to $150 on dishwasher purchases of $798 or more, with a maximum discount of $1,250.”
Read more: Lowe’s launches a new service as it works to win back customers
Home Depot is also launching deals on Hubspace smart home products, tool kits, and accessories during the event.
For holiday decor, the company is offering savings on indoor and outdoor items, including 100-count LED string lights for $5.98, select 3.5-foot LED pre-lit inflatables for $19.98, and 6.5-foot LED pre-lit artificial Christmas trees for $49.98.
The Black Friday deals from Home Depot come as it faces heightened competition from Lowe’s, its top rival. Lowe’s kicked off its Black Friday sales early on Oct. 29, and they are set to last for four weeks.
Just like Home Depot, Lowe’s is offering discounts on holiday décor, tools, appliances, and outdoor power equipment, with special deals featuring free products with select purchases from major tool brands.
Lowe’s is taking it a step further this year by expanding its annual 10 Days of Deals to 12 Days of Deals, which begins on Nov. 16. It is also launching its biggest Black Friday savings during Thanksgiving week.
Home Depot faces mounting challenges heading into the holidays
Home Depot is also making a major push to attract holiday shoppers at a time when many are limiting their spending due to economic pressures.
A recent survey by Thrivent found that 52% of Americans expect the current economic environment to affect their holiday spending at least somewhat. Approximately 72% said inflation is negatively impacting their household finances, while 71% said the same about gas prices.
Amid these challenges, 66% of Americans said they will purchase fewer gifts during the holiday season this year, up from 56% in 2025, while 46% plan to buy for fewer people, up from 37%. Also, 51% plan to purchase less expensive gifts while holiday shopping.
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In an interview with Retail TouchPoints in August, Neil Saunders, a retail analyst at GlobalData, said there will be some winners and losers during the holiday season as consumers change their spending habits.
“2026 will be a solid enough holiday season and consumers will come out and spend,” said Saunders. “That said, under the headline, spending will be selective and consumers will be very discerning about what they buy and where they buy it. This will mean results will be polarized. Some retailers will see good gains and others won’t.”
For Home Depot and other home-improvement chains, these consumer trends may be exacerbated by continued housing market headwinds.
According to Freddie Mac data, the average 30-year fixed mortgage rate reached 6.86% in September, up from 6.67% in August and 6.35% one year ago.
As rates went up, existing-home sales decreased 2.2% year over year in September, recent data from the National Association of Realtors showed. Also, the median existing-home price was $417,500, up 1.3% from a year earlier.
“Despite the small monthly gain on a seasonally adjusted basis, August and September marked the two slowest months for home sales this year,” said Lawrence Yun, National Association of Realtors chief economist, in a press release.
“Further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home.”
Related: Home Depot faces uphill battle amid a growing customer problem