Home Depot Makes Bold Move To Keep Prices Low

If you’re tired of paying more money for every single thing on your shopping list these days, you’re not alone.

Whether it’s clothing, household supplies, or basic food items like bread, milk, and eggs, costs seem to be going nowhere but up. 

In September, the cost of goods and services increased 3% on a year-over-year basis, according to that month's Consumer Price Index. And if you’re inclined to point a finger at tariffs, you probably wouldn’t be wrong. 

The tariffs introduced so far in 2025 are expected to raise the average household’s expenses by roughly $2,400 this year alone, according to an analysis from The Budget Lab at Yale University. 

In fact, tariffs and inflation are hurting consumers so badly that holiday spending is expected to plunge 10% this year, according to Deloitte's 2025 Holiday Retail Survey. 

Usually, even when times are tough, consumers manage to find a way to prioritize holiday spending.

This year, that may not be possible. 

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Tariffs could deal the retail industry a massive blow

At a time when inflation is squeezing so many households, the introduction of tariffs hasn't helped matters.

At this point, many Americans are cutting back on both essential and discretionary spending to cope with the stubbornly high costs they've grappled with since the Covid pandemic.

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But retailers that rely on discretionary spending are likely to be hurt most as the impact of tariffs continues to take hold.

Products like clothing, electronics, and home improvement items are particularly vulnerable to tariffs because they're commonly sourced from overseas. And since consumers are running out of options for spending less, many are pausing these purchases altogether.

That's been a problem for retailers such as Home Depot. 

During its most recent earnings call, the company said, "We are updating our fiscal 2025 guidance to include softer-than-expected results in the third quarter."

The company also said it expects "continued pressure in the fourth quarter."

Home Depot has a plan to keep prices low

Keeping prices low is something every retailer should focus on in the coming year as consumers continue to struggle financially and spending patterns change.

To that end, Home Depot is employing a smart, simple strategy – partnering with small U.S. businesses – to reduce tariff impacts and provide consumers with more affordable options during a period of ongoing economic uncertainty.

As the company announced in late November, it plans to “host prospective merchandise suppliers onsite for targeted pitch sessions and product capability demonstrations via The Orange Exchange event on February 19, 2026.” 

Suppliers can apply to participate through December 15, 2025.

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Orange Exchange aims to connect merchants with suppliers who can deliver products that add value for inflation- and tariff-weary consumers.

"Partnering with innovative U.S. small businesses allows us to bring innovation and quality products to our customers while supporting entrepreneurship and growth,” said Senior Director of Sustainability and Supplier Pipeline Candace Rodriguez.

Home Depot isn’t the only retailer that’s been pivoting in an attempt to shield customers from price increases. 

Costco, for example, is leaning on its Kirkland Signature line to produce more consumer essentials at lower prices. And Walmart, which already sources a large percentage of its products domestically, has been playing around with inventory in an attempt to avoid passing on tariff-related cost increases on food and essentials.

Whether Home Depot’s strategy does the trick in drumming up business remains to be seen. But the store’s customers should be relieved to know that the company is trying its best to keep prices as affordable as possible.

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