With the approach of Black Friday looming just a few weeks away, how will Home Depot fair among other retailers in an economy far from its peak? Most retailers are offering deep discounts on Black Friday and some of them will be open on Thanksgiving, a trend that started only recently. So what strategies will Home Depot roll out to have a successful holiday season?
Home Depot’s Black Friday Events
This year, Home Depot will be informing its customers via Facebook and email alerts as the deals and details about Black Friday events become available. The retailer plans to offer deals throughout the month of November and into December, one of the first being the Pre-Black Friday Sale on November 10 to 13 with deals on over 50 assorted brand name appliances including microwaves and refrigerators. The store announced that it would price match Amazon’s Black Friday prices. Additionally, Home Depot will take $100 off a minimum purchase of $1,996 and $500 off purchases of $4,996 or more from November 7 to December 4.
Home Depot’s Successful Strategies
In general, the home improvement giant has done well since the 2008 recession. According to a February 2013 press release, Home Depot has increased its sales by 13.9% in fiscal year 2012 compared with the previous year. Sales for repairs due to damage from Hurricane Sandy as well as an increased recovery of the housing market have had a strong impact on their bottom line, or net income. Another positive factor is CEO Frank Blake’sdecision in October last year to shut down its operations in China and halt the building of new outlets in the U.S. Contrary to the traditional view of continuous growth, Blake’s unprecedented decision to scale back future growth has allowed Home Depot to raise its profits and focus on the quality of its current stores.
Another major difference between Home Depot and other retailers is that customers have a project in mind when they walk into the store. They buy a few items and return to pick up more items later, finding they must come back and purchase a tool or other supplies they missed on the first trip. Return trips mean more sales at the register.
Home Depot’s Spring Black Friday
Have you ever heard of Spring Black Friday? According to Home Depot’s annual sales figures, the height of their yearly shopping season is in the first few weeks of spring. Craig Menear stated in a 2011 press release that spring is their Christmas. So Home Depot will focus its major sales during those early weeks of spring when consumers are most ready to improve their yards, update their homes, and start that long-awaited gardening project.
Home Depot in the future
Future projections for the retailer include increases in demand for repairs and upgrades over the next few years. Plus, as environmental concerns increase, Home Depot will continue its eco-friendly streak with WaterSense products. There is always a need to repair something around the house and that’s why there’s Home Depot.
Home Depot is sure to keep up with other retailer’s Black Friday sales by offering price-matching and great deals on name brand appliances. Consumers can get the most up-to-date information online by visiting their site or Black Friday pages. And if you don’t get everything you need on November 29, you can always come back in the spring!
Home Depot image courtesy of Shutterstock.