Engage3 has continued its Cyber5 weekend analysis by analyzing the deals offered by Home Depot over the Cyber5 Weekend (Thanksgiving to Cyber Monday). Home Depot, like many other retailers including Best Buy, Target & Walmart, have reported shoppers spending less on discretionary items, hitting overall sales.
Nevertheless, as previously highlighted, online expenditure saw a notable surge of 7.8% over the five days compared to the previous year. This presented Home Depot with a substantial opportunity to seize. In this analysis, we delve into Home Depot’s strategy on Black Friday and Cyber Monday, revealing how they positioned themselves to harness this ecommerce growth.
Key Takeaways
- Home Depot only had 4.9% fewer deals on Cyber Monday than Black Friday, a much lower fall than Amazon (US).
- Its own and exclusive brands dominated the categories with the most deals, Furniture & Bath. Home Decorators Collection led both categories including making up 50.2% of Bath deals.
- Shoppers were more likely to get a better price on Cyber Monday. Of the products that had deals on both Black Friday and Cyber Monday, 3.8% of deals had a different price on Cyber Monday, the majority of which were cheaper than Black Friday.
Home Depot had 4.9% fewer deals on Cyber Monday than Black Friday
Overall, Home Depot had 2,500 deals in the categories we analyzed on Black Friday, but this fell to 2,377 on Cyber Monday. The Furniture and Hand Tools categories had the greatest fall in deals between the 2 days, both dropping by 8.0%. The Power Tools Accessories category was the only one to have more deals on Cyber Monday, +6.6%, while the Appliance categories of Refrigerators, Ranges and Washers & Dryers all maintained the same number between the days.
96.7% of Cyber Monday deals were the same product deals as on Black Friday
Overall, we found 96.7% of Cyber Monday deals were on the same products as Black Friday, far greater than we saw across Amazon.com. Of these deals that were on the same products as Black Friday, the deal price remained the same on 96.2% of them, meaning almost 4% of deals were at a different price than Black Friday.
We found there was most variation in the appliances categories as 71.9% of the deals on Ranges did not have the same deal price on Cyber Monday as Black Friday. Dishwashers too were only 78.6% and outside of Appliances, Hand Tools had the lowest overlap in the same pricing at 85.3%.
Home Depot’s own brands dominated deals in the Furniture & Bath categories
Home Depot’s Home Decorators Collection was the most populous brand in its Furniture deals on Black Friday making up 17.7% and it accounted for more than half of the deals in the Bath category. Most of Home Decorations Collection deals in the Bath category were on Bath Vanities, as were Home Depot’s exclusive Glacier Bay brand which was 8.4% of the Bath deals.
Home Decorators Collection Furniture deals were largely evenly split across Bedroom, Entryway, Kitchen, Living Room and Home Office furniture. Home Depot’s exclusive StyleWell brand was the second-most listed brand within the Furniture deals, most of its promotions were on Kitchen & Dining Furniture.
Milwaukee dominated Power Tool deals
Overall, in the Power Tools category there were only 6 brands that featured in the deals, and it was Milwaukee that made up more than half of these deals (54.7%). Ryobi and DEWALT were the next most listed brands with 16.9% and 15.3% of deals overall. Milwaukee had the highest average depth of discount at 37.3% ahead of RIDGID (35.7%).
Power Tool Combo Kits were 42.5% of the Power Tool deals overall. Milwaukee was 80.9% of these deals, again ahead of Ryobi and DEWALT. Milwaukee once again had the highest average depth of cut in the Power Tool Combo Kits at 42.4% and 62.9% of Milwaukee’s deals were in this category.
Shoppers were more likely to get a better price on Cyber Monday
Looking at the Cyber Monday deals that had a different deal price to Black Friday, we found 72.4% of them were at a lower price on Cyber Monday at an average of 5.8% cheaper.
Focusing on Hand Tools, we can see that almost 33% of Milwaukee’s deals were at a cheaper price on Cyber Monday than Black Friday, the same was true of Husky and Klein Tools.
In Ranges, 4 ZLINE ranges were 5.3% more expensive than on Black Friday, the same was true of Samsung where 2 of its ranges were an average of 3.1% more expensive on Cyber Monday.
Home Depot’s approach hinged on its own brands
It’s clear to see one key aspect of Home Depot’s strategy to the Cyber5 weekend was to focus on its own and exclusive brands. Home Decorators Collection, StyleWell and Glacier Bay were all the most populous and prominent brands in the Furniture and Bath categories. While Milwaukee is not totally exclusive to Home Depot, it cannot be listed in rivals like Amazon, Lowe’s and Menards, and it was this brand that dominated the Tool categories.
This strategy allowed Home Depot the flexibility to extend substantial discounts and establish a more competitive pricing structure for these particular brands, differentiating itself from others in the category. In this landscape where consumers are exercising caution in non-essential spending, Home Depot strategically leaned on this approach, evidently deeming it the most compelling strategy to entice shoppers into making a purchase.
Click here to request more insight into the DIY and Tools category over the Cyber5 weekend in Amazon, Home Depot & Lowe’s or to find out how Engage3 helps retailers and brands improve their pricing performance and compete more profitably through data science & analytics.
